(Bloomberg) — American International Group Inc. and Prudential Financial Inc. told regulators they could divest units and halt policy sales to avoid taking a bailout in a future crisis.
AIG, the insurer that repaid a U.S. rescue in 2012, and Prudential, which didn't take Treasury Department funds, submitted the wind-down plans for the first time, after being designated systemically risky by federal regulators last year. The public portions of the plans, released yesterday, are similar to those submitted by banks in their reliance on unit sales.
If the sale of assets is insufficient to stabilize AIG, the insurer's main subsidiaries would eventually be liquidated under the supervision of state and national watchdogs, according to the company's document.
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