RJ and Makay

A couple years ago, most Americans probably thought this day would never come. But it's just about here.

American International Group (AIG) confirmed yesterday that, on Friday, it would finally repay the massive bailout it received in 2008. It'll cover the debt via complete recapitalization involving the issue of 75 million warrants. The warrants will allow current shareholders to buy AIG common stock at $45 per share, a 23% discount from the $58.40 the stock closed at yesterday.

The recapitalization of bailed-out insurer American International Group Inc. could close this week. Last Thursday night, AIG's board approved the issue of warrants to buy 75 million shares of AIG common stock. The warrants stipulate that all parties to the recapitalization agree to close January 14, which is this Friday.

That's no guarantee, but it was one of the last key steps in the recapitalization procedure. AIG is expected to issue a statement in the next day or so about whether the deal will actually close on the 14th. The issue of warrants to that effect strongly suggests it will.