Davis Polk advised the Federal Reserve Bank of New York (FRBNY) and the U.S. Department of the Treasury (Treasury) in connection with the recapitalization of American International Group (AIG) completed on January 14, 2011.

At the close of the transaction, AIG repaid the FRBNY a total of approximately $47 billion, including the outstanding balance on the original $85 billion credit facility provided to AIG in September 2008. AIG no longer has any outstanding obligations to the FRBNY. In addition, Treasury now owns 1.655 billion shares of AIG common stock (approximately 92% of the company) and approximately $20 billion of preferred equity interests in two AIG subsidiaries.

The Davis Polk team included partners Paul R. Kingsley, John K. Knight, Ethan T. James, Bjorn Bjerke, John M. Brandow, Kathleen L. Ferrell and Marshall S. Huebner and associates William J. Chudd, Harold Birnbaum, Anjali Sara Bonner, Thomas Bourdeaut, Aaron Page, Brian M. Resnick, Joshua Ruland, Eli J. Vonnegut and Xin Yu. All members of the Davis Polk team work in the New York office.