American International Group Inc. is preparing to ask the Federal Reserve to relax rules on how bidders pay for assets as it tries to repay a $60 billion loan, according to a report in the Financial Times Wednesday.
The New York-based insurer wants to boost competition for the assets by allowing bidders to pay using a greater portion of shares, or through installments, the newspaper reported, citing people close to the situation.
Under the current plan, AIG can only sell assets to bidders paying at least 90 percent of the price in cash.
Maybe if govt took some time to evaluate the loans similar to the grilling process the automakers took and forced to provide a plan this could have been avoided.