For release at 4:30 p.m. EST January 27, 2011 The Board's H.3 statistical release, "Aggregate Reserves of DepositoryInstitutions and the Monetary Base," reflects the closing of the AmericanInternational Group, Inc. (AIG), recapitalization plan, which occurred onJanuary 14, 2011. The recapitalization plan was designed to restructure andfacilitate repayment of the financial support provided to AIG by the U.S.Department of the Treasury and the Federal Reserve. Upon closing of therecapitalization plan, the credit extended to AIG by the Federal Reserve Bankof New York under the revolving credit facility (AIG loan), including accruedinterest and fees, was repaid in full. The AIG loan is reported in the "Creditextended to American International Group, Inc., net" category of total andother borrowings from the Federal Reserve, which is shown in table 1a of theH.3 statistical release. The average value of "Credit extended to American International Group, Inc.,net" for the two-week period ending January 26, 2011, reflects the closing ofthe AIG recapitalization plan. The average value for the two-week periodending January 26, 2011, is greater than zero because the AIG loan was repaidin full on January 14, the second day of this two-week period. Table 1a willcontinue to show historical values for "Credit extended to AmericanInternational Group, Inc., net" to provide a complete disaggregation of totaland other borrowings from the Federal Reserve for past periods.
