New York state governor David Paterson has granted insurance, finance and investment firm American International Group (AIG) special permission to access $20 billion in assets of its subsidiaries, which include International Lease Finance Corporation (ILFC), to supply ample liquidity to run daily operations at AIG.
AIG had no comment regarding the approval the special permission granted by the state of New York. AIG bled nearly $5.4 billion in losses during the second quarter and unveiled a restructuring plan yesterday.
The company was reportedly considering a sell-of of ILFC after in June announcing the lessor would continue as part of core business.
New York governor Paterson stresses that no taxpayer funds are being used to assist AIG, rather its decision gives the company "the ability, in effect, to provide a bridge loan to itself".