American International Group has recovered more than $2bn in settlements with banks over the soured mortgage bonds that helped push the world’s biggest insurer to the brink of failure during the financial crisis.
The mostly private deals mean that AIG is unlikely to pursue further legal action against big banks for mis-selling mortgage-backed securities before 2008, effectively closing one of the most contentious chapters in the company’s 95-year history.
“We have had settlement discussions with many banks that have ended up, I think, very favourably for both sides,” Peter Hancock, AIG’s incoming chief executive, said in his first interview since the insurer announced that he would take over from Bob Benmosche, the strident CEO who helped return the company to profitability.