Bailed-out insurer AIG announced a deal Thursday that it said would allow it to repay taxpayers.
Under the complicated arrangement, Treasury will temporarily own 92.1 percent of the insurer, which said it would begin repaying $46 billion owed to the Federal Reserve Bank of New York.
Treasury Secretary Timothy Geithner hailed the arrangement, saying it would speech up AIG's repayment and put taxpayers in a stronger position.
"The exit strategy announced today dramatically accelerates the timeline for AIG's repayment and puts taxpayers in a considerably stronger position to recoup our investment in the company," he said in prepared remarks. "While there is a lot of work ahead to execute the terms of this agreement, today we are much closer to seeing a clear path out."