The New York Fed has announced the termination of its assistance to AIG and the full repayment of its loans to the firm, representing a substantial step toward achieving the Fed's dual goals of stabilising AIG and ensuring its repayment of government assistance. In addition, the Fed has been paid in full for its preferred interests in the AIA and ALICO SPVs.

"[This] reflects the significant progress AIG has made in reducing the scope, risk and complexity of its operations and stabilising its operating results," the Fed notes. "The accelerated repayment of the New York Fed frees up collateral that will enable the company to access private debt markets, an essential step toward facilitating the US Department of the Treasury's future sale of the common stock it owns."

The loans extended by the Fed to the Maiden Lane II and III facilities remain outstanding, however, and are being repaid from the assets in those facilities. The fair values of the portfolios well exceed the balances of the loans.