AIG says 'highly disappointed' in Fed decision

Insurer American International Group said on Wednesday that it was "highly disappointed" in the Federal Reserve's decision to reject its bid for a pool of mortgage-backed securities.

"We are highly disappointed in the Fed's decision, which may prevent AIG from delivering on its goal that US taxpayers earn a profit on their investment in AIG," Mark Herr, vice president of AIG Media Relations, said in an emailed statement.

"That the Fed, which has been such a constructive partner over the last two years, would hurt the very company in which US taxpayers own a 92% stake is very difficult to understand," Herr said.