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It’s official, after announcing that AIG chief Martin Sullivan would tender his resignation over the weekend, the company has a new CEO who is ready to excise the demons of the subprime mortgage mess. AIG has taken billions in write downs relating to bad mortgage bets over the past several quarters.
From Bloomberg:
Robert Willumstad, American International Group Inc.’s new chief executive officer, said “there will be no sacred cows” in his companywide review of the world’s biggest insurer.
Willumstad, who said he was encouraged after speaking with Sullivan’s predecessor Maurice “Hank” Greenberg yesterday, will need to assure regulators, investors and AIG’s 116,000 employees that he has a firm grip on the New York-based company. Sullivan, 53, was ousted after AIG lost 41 percent of market value this year following $13 billion of losses over two quarters.
Willumstad promised to have a turnaround plan in place by September and said that recruiting a chief financial officer was a priority after CFO Steven Bensinger was named vice chairman in May. The company’s performance has been “unacceptable,” said Willumstad, who joined the insurer’s board in 2006 after serving as an executive at Citigroup Inc. and was named AIG’s chairman later that year.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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