American International Group Inc. announced Thursday that it has hired Ernest T. Patrikis, the Federal Reserve Bank of New York's No. 2 official.

At the insurance giant, the 30-year Fed veteran will serve as a special adviser for regulatory matters and report directly to AIG chairman Maurice R. "Hank" Greenberg. Mr. Patrikis is scheduled to leave the New York Fed on July 29 and start at AIG in mid-August.

Mr. Patrikis said Thursday that his specific duties have not yet been decided, but he is unlikely to conduct any lobbying for AIG. "It is really going to be working with Hank on his priorities," he said.

Mr. Patrikis, 58, said he realized in December that he was getting older and could no longer wait to make the jump to the private sector. He said he made inquiries at several large financial firms and was persuaded by Mr. Greenberg to join AIG.

"I have had just an excellent ride at the New York Fed and there have been fabulous experiences," he said. "But I had to ask what I wanted to do with the rest of my career.

"Now it is time for something completely different."

Mr. Patrikis is first vice president and general counsel of the New York Fed. He is an alternate on the Federal Open Market Committee, the Fed's interest rate setting group.

"It would be difficult to overstate the contribution that Ernie Patrikis has made to the New York Fed and the Federal Reserve system," said New York Fed President William J. McDonough. "He has a superb knowledge of the payments system and banking regulation." -Jaret Seiberg

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