American International Group (AIG.N) offered on Thursday to buy back, for $15.7 billion cash, mortgage-backed securities the U.S. government took off the bailed-out insurer's hands during the financial crisis. The announcement came as a surprise, though AIG -- which nearly collapsed in the fall of 2008 partly because of the securities -- said in a regulatory filing it has been preparing to make the offer for at least a year. The company said it has set aside the cash to pay for the deal and will still have "strong liquidity reserves" after it closes.
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