UBS advising AIG on sale of private bank-source

NEW YORK, Oct 10 (Reuters) - Insurer American International Group Inc (AIG.N) hired UBS (UBSN.VX) to auction its Swiss-based private banking unit, AIG Private Bank, a person familiar with the matter said on Friday.

AIG, crippled by losses on bad mortgage bets, is trying to sell assets to pay off a massive U.S. government loan. Earlier this month, the company said it will focus on its main insurance operations and put the rest of its businesses up for sale.

UBS declined to comment, while AIG wasn't immediately available for comment. (Reporting by Paritosh Bansal; Editing by Derek Caney)