In a recent development confirmed by the American International Group Inc., the company has closed as many as two of its transaction with the Federal Reserve Bank of New York, thereby reducing the debt it owes to FRBNY by about $25 Billion "in exchange for the FRBNY's acquisition of preferred equity interests in certain newly formed subsidiaries".

As has been confirmed by AIG, under the deals of the transaction, the FRBNY would receive preferred shares worth $16 Billion in American Life Insurance Company and $9 Billion in American International Assurance Company, both arms of the parent insurance company.

With the development, the company's goal of placing the aforementioned two international insurance franchises for an IPO or third party sale has become more achievable. The IPO or sale, as of now, depends on the condition of the market and is subject to traditional regulatory approvals.

As per official figures shared AIG's "outstanding principal balance under the New York Fed credit facility" now stands at nearly $17 Billion, and the complete amount available under the facility has, with the development, been reduced to $35 Billion from the earlier figure of $60 Billion.

"We continue to focus on stabilizing and strengthening our businesses, but expect continued volatility in reported results in the coming quarters, due in part to charges related to ongoing restructuring activities", shared A. I. G. Chief Executive Bob Benmosche.