Discredited financial products division being wound down
US Treasury assistant secretary Herbert Allison Jr. told a US House panel that AIG’s financial products unit was now exposed to $1 trillion of risk, halved from $2 trillion in September 2008.
The wind-down process is expected to be mostly done by the end of next year, he said.
Allison said the Treasury expects AIG to sell its international life insurance businesses either next year or in early 2011. The government would receive the first dollars from the sale of those businesses.
