AIG to spin off AIA to pay back government loans

American International GroupInc. (AIG), the insurer whose name has become synonymous with greed and the symbol of the current crisis and government bailout programs, announced late Sunday it will accelerate its plan to to spin off American International Assurance Company, Ltd. (AIA Group) in an initial public offering on an Asian stock exchange. AIG said the public listing of the AIA Group is a significant step in its goal to repay billions of dollars in U.S. government loans.

AIG said all the right things in the statement. CEO Liddy was quoted as saying the public listing is "in the best interests of all stakeholders, including U.S. taxpayers, policyholders, employees and distribution partners."