Treasury says AIG is in better shape to repay $182B bailout, but market conditions a factor

Treasury: AIG in better shape to repay bailout

WASHINGTON — A key Treasury official plans to say that American International Group Inc. is better positioned to pay back a $182 billion federal bailout.

But Treasury chief restructuring officer Jim Millstein says in prepared remarks that AIG’s prospects for repayment will depend on the insurance giant’s future profitability and the insurance industry’s strength.

AIG received the largest bailout of any company during the financial crisis that crested in September 2008. The company could not meet its financial obligations after selling guarantees on mortgage-related investments that later lost value.

Millstein is scheduled to testify Wednesday before the Congressional Oversight Panel, which is monitoring the $700 billion financial bailout.