The NY Fed has returned $5B to AIG (AIG) that the insurer contributed to a fund in 2008 as part...

|By:, SA News Editor

The NY Fed has returned $5B to AIG (AIG) that the insurer contributed to a fund in 2008 as part of its rescue. The repayment follows the sale of CDOs held in Maiden Lane III; AIG will receive a third of the profit from additional divestments, while the NY Fed will get the rest. There are expectations AIG will use the cash to buy back stock.