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Former AIG chief offers alternative rescue plan: report

Tue Oct 14, 2008 3:54am EDT

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(Reuters) - Hank Greenberg, former Chief Executive of American International Group Inc (AIG.N) will soon release a plan outlining an alternative way to save the stricken insurer that was rescued by the U.S. government last month, the Financial Times said.

Crisis in Credit

Greenberg, who left AIG in 2005, is expected to file his proposal with U.S. securities regulators and is also expected to present it to U.S. Treasury Secretary Hank Paulson and key members of Congress, the paper said.

The details were unclear but the plan could involve modifications to the deal with the U.S. government, which extended an $85 billion loan to the insurer last month, the paper said.

The government increased the loan to $122.8 billion last week. AIG, once the world's biggest insurer, has been crippled by losses on bad mortgage bets.

AIG was not immediately available to comment.

(Reporting by Shradhha Sharma in Bangalore; Editing by Erica Billingham)
Crisis in Credit


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