In an August 2009 meeting, Larry Roth, the CEO of The Advisor Group, was blunt about how much the massive taxpayer bailout had damaged the AIG name (See "They're Back," October 2009). In fact, the network of broker-dealers was still called the AIG Advisor Group at the time, but was planning a major rebranding that would distance it from the troubled company.

"I don't think there is anything I could tell you with a straight face that is great about the AIG name at the moment," Roth said then. But he also said that the 11th-hour decision made by AIG's then-new president and CEO Robert Benmosche to nix a deal for the advisor group had brought closure and clarity to the network's three broker-dealers-Royal Alliance of New York, SagePoint Financial of Phoenix and FSC of Atlanta.

Despite the turmoil surrounding AIG, Roth said, The Advisor Group was increasing its marketing budget, organizing conferences, meeting with advisors and stepping up its recruitment efforts. He also credited Benmosche's leadership.

Fast-forward 14 months and it's no surprise that Roth, who seemed to possess unwavering confidence even during the worst of times, is even more hopeful about the advisor network's prospects. The American International Group's deal to repay the Federal Reserve Bank of New York almost $100 billion of the money it received from the Troubled Asset Relief Program signals the beginning of the end for the country's most controversial government intervention into the business sector. For The Advisor Group, the deal brings with it the possibility of escaping from under the dark cloud that has enveloped the entire company. (The broker-dealer network is owned by SunAmerica, which itself is a wholly owned subsidiary of AIG.)

"No one was surprised that senior management was able to accomplish what they did, but I was pleasantly surprised by how quickly it happened," Roth says. "I was telling my management team that although I had no expectation whatsoever, I was hoping that a year from now we would be able to tell a story like this. I'm really happy that it came so quickly, but of course there is still a lot of work to do."

BUILDING ENTHUSIASM

Indeed, plenty of work remains. Although the deal to sever ties with AIG will eventually end the government's investment in the company, the ramifications of the taxpayer bailout cannot be brushed aside so easily. The extent to which the AIG brand is tainted remains unknown. Is it permanently damaged, or will Americans eventually forgive, if not forget? Are advisors still wary of the AIG affiliation?

It is also unclear whether taxpayers will end up losing money on the deal or profiting from it. (The answer will likely play a factor in how foregiving people are.) To borrow a quote from the movie Magnolia-you may be done with the past, but the past isn't done with you.

But despite the nagging uncertainties, there is little doubt that The Advisor Group is in a much better position than when Roth spoke to Financial Planning last year. He notes that over the past 18 to 24 months, Benmosche and SunAmerica CEO Jay Wintrob have invested heavily in back-office support, technology, client services and other aspects of its business.

This level of financial support did not come as a surprise to Roth. Shortly after Benmosche joined AIG, he and Roth sat together at a dinner with other senior executives and Benmosche told him that he was enthusiastic about the independent broker-dealer business, which he had a significant amount of experience with in the past. Benmosche also indicated that not only did he intend to keep the business-he was also going to give Roth and his team the funding they needed to invest in their broker-dealers.

"So as it relates to the day-to-day operations of the business [the deal] doesn't really have an impact," Roth says. "What it does, though, is build a significant amount of enthusiasm with our employees and our advisors. "

Roth happened to be at a national education conference for advisors in Florida when he spoke to Financial Planning in October-roughly a week after AIG's deal to repay the Fed and Treasury was announced. He said the buzz among advisors there was noticeable. Although it's hard to say what the reputation of the company will be to outsiders going forward, internally things are looking up.

"The beauty of this is that when Bob came in, he said he was going to support our businesses, find a way to repay the government and build shareholder value in a more traditional sense. He's done that," Roth says. "So you have the CEO of a firm saying that he's going to do something that is frankly quite bold and then accomplishing it. I think that's a positive thing from a reputation standpoint internally for advisors and employees."