FINANCIAL CRISIS

AIG to be broken up within four years: CEO

AIG head Edward Liddy said before the US House of Representatives that the bailed out company will be dismantled to minimise risk within four years.

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AFP - Insurance giant AIG is to be broken up within four years, its CEO Edward Liddy told lawmakers on Tuesday as the bailed-out company faced mounting pressure over lavish bonuses.

"The dividing of AIG is exactly what we're doing so the entity that existed for 90 years as AIG will over time cease to exist," Liddy said.

"This business will get a lot smaller at the end of '09. A whole lot smaller at the end of 2010. As it gets smaller it just represents much less risk," said the CEO of American International Group.

Asked how long the process would take, he responded: "Four years."

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