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The new head of the New York Federal Reserve Tuesday defended saving American International Group from collapse as the right thing to do to prevent further damage to the world economy and said ÌìÃÀÍøÕ¾´«Ã½´«Ã½ will eventually be able to pay back all the money taxpayers have injected into the insurance giant.

“Although it will take time, we still expect that proceeds from asset sales should enable ÌìÃÀÍøÕ¾´«Ã½´«Ã½ to repay the New York Fed in full,” William Dudley said in to the House Financial Services Committee.

“The threat of a major systemic risk event has been averted by honouring all of ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s contractual obligations around the globe-from insurance policy obligations owed to individuals, municipalities and businesses across the U.S., to the posting of collateral under credit default swap arrangements with the full range of counterparties recently disclosed,” Dudley said.

(Reporting by Corbett B. Daly; Editing by Theodore d’Afflisio)

Topics USA New York ÌìÃÀÍøÕ¾´«Ã½´«Ã½