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ITEM 8 / NOTE 11. VARIABLE INTEREST ENTITIES.....................................................................................................................................................................................The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as wellas our maximum exposure to loss associated with these VIEs:Maximum Exposure to LossTotal VIE On-Balance Off-Balance(in billions) Assets Sheet Sheet TotalDecember 31, 2012Real estate and investment fundsAffordable housing partnershipsOtherTotal$ 16.7 $ 1.8 $ 0.2 $ 2.00.5 0.5 – 0.51.0 0.1 – 0.1$ 18.2 $ 2.4 $ 0.2 $ 2.6December 31, 2011Real estate and investment funds $ 18.3 $ 2.1 $ 0.3 $ 2.4Affordable housing partnerships 0.6 0.6 – 0.6Maiden Lane II and III interests 27.1 7.0 – 7.0Other 1.5 – – –Total $ 47.5 $ 9.7 $ 0.3 $ 10.0Balance Sheet Classification..............................................................................................................................................................................................Our interests in the assets and liabilities of consolidated and unconsolidated VIEs were classified in theConsolidated Balance Sheet as follows:Consolidated VIEsUnconsolidated VIEsDecember 31, December 31, December 31, December 31,(in billions) 2012 2011 2012 2011Assets:Available for sale securities $ 2.9 $ 0.4 $ – $ –Trading securities 1.0 1.3 0.17.1Mortgage and other loans receivable 0.4 0.5 ––Other invested assets * 4.0 17.2 2.32.6Other asset accounts 3.0 3.4 ––Total $ 11.3 $ 22.8 $ 2.4 $ 9.7Liabilities:Long-term debt $ 0.7 $ 1.7 $ – $ –Other liability accounts 1.2 0.9 ––Total $ 1.9 $ 2.6 $ – $ –* Decrease from prior year was due to the repayment of the FRBNY Credit Facility from the AIA and ALICO SPVs pursuant to theRecapitalization.Real Estate and Investment Funds..............................................................................................................................................................................................AIG, through AIG Global Real Estate, is an investor in various real estate investments, some of which are VIEs.These investments are typically with unaffiliated third-party developers via a partnership or limited liability companystructure. The VIE’s activities consist of the development or redevelopment of commercial and residential real estate.Our involvement varies from being a passive equity investor or finance provider to actively managing the activities ofthe VIE.Our insurance operations participate as passive investors in the equity issued primarily by third-party-managed hedgeand private equity funds. Our insurance operations typically are not involved in the design or establishment of VIEs,nor do they actively participate in the management of VIEs...................................................................................................................................................................................................................................274 AIG 2012 Form 10-K