![]() The New York Fed said it set up the trust agreement to avoid conflicts with the New York Fed's supervisory and monetary policy functions. The Fed appointed Jill Considine, a member of the Council on Foreign Relations and the Economics Club of New York, Chester Feldberg, former chairman of Barclays Americas, and Douglas Foshee, owner of El Paso Corp., a natural gas pipeline system, to oversee the insurer. "We are actively seeking new members of the board who could add important skills and perspectives," the Trustees said in testimony. The three trustees are also planning to seek new AIG board members and will make a decision shortly, according to testimony prepared for delivery on Wednesday. According to a letter to Liddy on May 7, the Trustees are seeking to have a broad review of the insurer's compensation practices with a focus on "performance-based compensation philosophy," by the end of the year. The three trustees are also expected to testify about their oversight of AIG at the hearing on Wednesday. Liddy pointed out that the company works closely with trustees appointed by the New York Federal Reserve Bank. "We continue to explore multiple options to break apart these trading books so that we can reduce the remaining risks, sell off portions of the business." Liddy said in the testimony. ![]() He pointed out that AIG has also reduced its exposure to "complex derivatives" from its peak of $2.7 trillion to $1.5 trillion. In testimony, Liddy said he expects AIG will complete its transfer of two key divisions, American Life Insurance Company, or Alico, and American International Assurance Co., or AIA, into a special purpose entity "in the near future." As part of a deal with bank regulators, AIG is moving the two units into this division in exchange for a substantial debt reduction.ĪIG is also transferring its Global Property & Casualty Insurance unit into a special purpose entity to prepare for the potential sale of a minority stake in the business. "Rampant, unwarranted criticism of AIG serves only to diminish the value of our businesses around the world to the detriment of our shareholders, including taxpayers, who own some 80% of AIG," Liddy said. ![]() Liddy, who took over as CEO of the company in September, argued that criticism the company received, in part, for granting the bonuses hurts the business and billions of taxpayer dollars invested in the company. In exchange, the administration has received an 80% stake in the company.ĪIG also has also come under criticism for paying out $163 billion in bonuses to traders of credit default swaps, considered central to the financial crisis. We have reduced, but not eliminated the systemic risk that AIG presents to the global financial system," Liddy said in testimony that he plans to deliver to a House Oversight and Government Reform Committee hearing on Wednesday focusing on the collapse and federal bailout of the mega-insurance company.ĪIG ( AIG 1.84, +0.03, +1.66%) has received over $180 billion in taxpayer-funded bailout dollars to keep it afloat, in part, because of concern by Treasury officials that the super-sized insurance corporation's collapse would have caused too much collateral damage to the financial markets. The financial products unit will not exist. Chief Executive Edward Liddy on Wednesday plans to defend the embattled insurer by describing steps it has taken to reduce its size and risk to the global financial system. WASHINGTON (MarketWatch) - American International Group Inc. AIG's Liddy: Insurer has cut its systemic impact to markets Insurer has reduced, but not eliminated, its risk to global markets by selling assets
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |