8-K/AMaterial AgreementsExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K/A Report, Material Agreement (May 15, 2009)

Filed May 15, 2009For Securities:AIG

Summary

This 8-K filing from American International Group (AIG) on May 15, 2009, primarily discloses the filing of an Amended Shortfall Agreement between Maiden Lane III LLC and AIG Financial Products Corp. The agreement, originally dated November 25, 2008, was amended on December 18, 2008. The filing indicates that portions of Schedule A to this agreement have been redacted, with the justification for this redaction being a request for confidential treatment. For investors, the key takeaway is the formalization and amendment of a significant agreement related to a shortfall. While the specific terms redacted are unknown, the existence of such an agreement and its amendment suggests ongoing financial restructuring or obligations involving AIG's financial products division and a related entity, Maiden Lane III LLC. Investors should seek to understand the implications of this shortfall agreement on AIG's financial health and potential liabilities, especially given the context of the 2008 financial crisis and AIG's systemic importance.

Key Highlights

  • 1AIG filed an Amended Shortfall Agreement dated December 18, 2008, with Maiden Lane III LLC and AIG Financial Products Corp.
  • 2The original Shortfall Agreement was dated November 25, 2008.
  • 3Portions of Schedule A of the Amended Shortfall Agreement have been redacted.
  • 4The redaction is due to a request for confidential treatment.
  • 5This filing is an amendment to a prior filing, indicating the formalization of a material definitive agreement.
  • 6The filing was made on May 15, 2009, providing updated information on this agreement.

Frequently Asked Questions

The Amended Shortfall Agreement signifies a formal arrangement and amendment to an agreement concerning potential shortfalls between Maiden Lane III LLC and AIG Financial Products Corp. While the specific terms are not fully disclosed due to redactions, it suggests an understanding of potential financial obligations or support mechanisms.

The redactions were made pursuant to a request for confidential treatment. This is common practice to protect proprietary or sensitive business information that could be competitively disadvantageous if disclosed publicly.

Maiden Lane III LLC was a special purpose vehicle created by the Federal Reserve Bank of New York to purchase troubled assets from AIG during the 2008 financial crisis. Its primary purpose was to help stabilize AIG by removing illiquid and complex assets from its balance sheet.

The implications depend on the nature of the 'shortfall' and the obligations outlined in the agreement. Investors should consider if this agreement represents a contingent liability, a form of financial support, or an ongoing commitment that could impact AIG's financial performance and risk profile. The lack of full disclosure due to redactions makes a definitive assessment challenging without further information.