AIG Chief may step-down

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

AIG, the finance giant that has taken repeated and severe losses related to mortgage melt-down, may see its CEO resign as the company continues to reel in the wake of write downs.

From Bloomberg:

American International Group Inc.’s board is meeting today and may accept the resignation of Chief Executive Officer Martin Sullivan, the Wall Street Journal reported, citing an unidentified person familiar with the situation.

Sullivan’s resignation is “highly likely” to happen, the newspaper said, citing the person.

AIG may replace Sullivan after turmoil in housing and credit markets caused the worst loss in the company’s 89-year history. The company, ranked No. 1 by assets among insurers, has lost more than a third of its market value since Sullivan took the top job following the ouster of Maurice “Hank” Greenberg in 2005.

Sullivan, 53, would join former CEOs including Citigroup Inc.’s Charles “Chuck” Prince and Merrill Lynch & Co.’s Stan O’Neal who lost their jobs in the collapse of the U.S. subprime mortgage market. AIG posted a $5.29 billion fourth-quarter loss, two months after Sullivan reassured investors that any drop in the value of its holdings would be “manageable.”