'American International Group'에 해당되는 글 4건

  1. 2009.03.22 Conn. AG says AIG paid $218M in bonuses by CEOinIRVINE
  2. 2008.12.28 The Biggest CEO Firings of 2008 by CEOinIRVINE
  3. 2008.12.02 AIG Sheds A Private Bank by CEOinIRVINE
  4. 2008.11.11 TARP Stretched Thin by CEOinIRVINE

Connecticut's attorney general says documents turned over to his office by American International Group Inc. shows the company paid out $218 million in bonuses, higher than the $165 million previously disclosed.

Attorney General Richard Blumenthal's office received the documents late Friday after issuing a subpoena.

Blumenthal says the documents show that 73 people received at least $1 million apiece, and five of those got bonuses of more than $4 million. The financially ailing insurance giant has been under fire for giving bonuses after receiving more than $182.5 billion in federal bailout money.

AIG (nyse: AIG - news - people ) spokesman Mark Herr declined to comment Saturday.

Blumenthal said the newly revealed number will "further fuel the justified anger and revulsion that people feel."




Posted by CEOinIRVINE
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They fell from some of the most powerful positions on earth.

The bloodletting in the c-suite started in 2007. It still hasn't stopped.

Another year goes by and more chief executives get the ax--probably more than in any previous year. People shook their heads when Charles Prince III at Citigroup (nyse: C - news - people ) and Stanley O'Neal at Merrill Lynch (nyse: MER - news - people ) got the boot in 2007. Now it look like they were lucky. They got out just in time.

Martin Sullivan of American International Group (nyse: AIG - news - people ) (let go in June), Kerry Killinger at Washington Mutual (nyse: WM - news - people ) (September) and Richard Fuld of Lehman Brothers (nyse: LEHMQ - news - people ) (leaving next month) are among the biggest names to be shown the door as a result of the economic crisis.

Their distinguished company includes James Cayne of the now-deceased Bear Stearns and Richard Syron and Daniel Mudd, the former CEOs of the mortgage buyers Freddie Mac (nyse: FRE - news - people ) and Fannie Mae (nyse: FNM - news - people ).

"There are two kinds of CEO firings," says Noel Tichy, a professor at the Ross School of Business at the University of Michigan. "There are the crooks and there are the incompetents." This year the biggest departing names all fell into a gray area in between.

None was as corrupt as the executives embroiled in the infamous Enron and Tyco scandals of a decade ago, but you couldn't just say they were simply stupid either. CEOs in the financial services industry discovered that they had allowed their companies to take suicidal risks with other people's money based on bad or staggeringly incomplete information. Many of them have paid with their jobs.

In Pictures: 11 Top Bosses Who Got The Boot in 2008

Despite their prominence, these headline names compose just a small fraction of the 1,361 U.S. CEOs who left their jobs this year through November. That's up from 1,356 in all 12 months of last year. The final 2008 number may prove to be a record, beating the previous one of 1,478 set in 2006, according to data collected by the management consulting firm Challenger, Gray & Christmas.


Posted by CEOinIRVINE
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AIG Sheds A Private Bank

Business 2008. 12. 2. 03:41
AIG is shedding assets to help it ride through a bailout from Uncle Sam.

American International Group (nyse: AIG - news - people ) announced Monday that it had sold its wealth management subsidiary to Aabar Investments, a global investment company based in Abu Dhabi. A spokesman for AIG did not wish to reveal the value of the transaction, however Aabar said in a press release on its Web site that it had paid $254.0 million for AIG Private Bank, “subject to a post closing price adjustment based on the net asset value and assets under management of the bank at closing.”

Aabar said it would also assume $83.0 million in debt outstanding as a part of the transaction. AIG did not return phone calls to confirm the sale amount in time for publication.

AIG has kept taxpayers and shareholders, who own 80.0% and 20.0% of the firm, respectively, largely in the dark ever since the insurer received its first $85.0 billion lifeline back in September from the U.S. government. Details about the firm’s troubles and the government’s ad hoc bailout strategy have remained hazy even as taxpayer borrowings ballooned to $152.0 billion in early November.

AIG Private Bank, which currently has $8.3 billion in assets under management, will assume a new name, become an independent financial institution and will be headquartered in Switzerland along with offices in Hong Kong, Shanghai, Singapore and Dubai. It will continue to focus on providing wealth management services to high-net worth individuals in Switzerland, Western and Eastern Europe, Asia and the Middle East.

News of the sale might have boosted investor morale but not this time. New York-based AIG fell 7.5%, or 15 cents, to $1.86. The plan for the insurer to sell off its parts and pay back the the U.S. government and emerge as a profitable enterprise may be losing its credibility. (See "Ackman: Yes, we Have No AIG")



Posted by CEOinIRVINE
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TARP Stretched Thin

Business 2008. 11. 11. 08:24

As more financial firms draw down bailout assistance from the U.S. government--and more banks and automakers get in line--the $700 billion Uncle Sam has set aside in rescue funds might not be enough.

Embattled insurance company American International Group (nyse: AIG - news - people ) got the newest slice of the pie Monday when the Treasury Department said it would buy $40 billion worth of preferred shares in the firm. An additional $250 billion has been set aside for Treasury to buy shares in other companies, mainly banks. That leaves the government with $410 billion still to be spoken for, but Treasury is spending its cash quickly.

So far, eight large U.S. banks have taken half of the first $250 billion; of this amount, another 44 banks have asked for a combined $47 billion. There are potentially hundreds of other banks lining up to file applications for the remaining $78 billion. Speaking at a news conference Monday, Assistant Treasury Secretary Neel Kashkari said the program is ample enough for all qualifying applicants.

Well, perhaps. But with insurance companies and U.S. automakers also seeking government aid, it remains unclear when or how the government will tap into its remaining funds.

For now, at least, the agency is "comfortable with the requested amount" of $700 billion, says Treasury spokeswoman Jennifer Zuccarelli in an e-mail. What's not known is whether the administration will spend the lot by the end of the year--or whether any monies will be left for the next administration to dole out as it sees fit.

"We will announce our need for funding as it arises," Zuccarelli says. Officials from President-elect Barack Obama's office did not return a request for comment.

As part of the bailout bill passed in October, Congress set up the "Troubled Assets Relief Program," also known as the TARP, which gives the Treasury secretary broad authority "to purchase, and to make and fund commitments to purchase troubled assets from any financial institution." Congress gave Treasury $250 billion immediately, and President Bush requested an additional $100 billion. The remaining $350 billion comes with strings attached: The president can ask for the balance, but Congress has the right to say no.

In its bailout of the financial system, Treasury made the first $250 billion--known as the Capital Purchase Program--available to banks, savings associations and certain bank and savings and loan holding companies. The deadline for publicly traded banks to apply for the program is Friday, though Treasury is extending the deadline for private banks to apply.

The $40 billion being used to purchase AIG stock comes from the $100 billion requested by President Bush several weeks ago. Treasury's Kashkari says this purchase is a one-off deal and not part of a new plan. "The TARP's foremost purpose is to stabilize the financial system," he says. "This action was necessary to maintain the stability of our financial system." In return, AIG has to comply with strict limits on executive compensation, corporate expenses and lobbying.

It's also an indication that Treasury is using its money to help both beleaguered firms as well as healthy ones. Treasury Secretary Henry Paulson has portrayed the Capital Purchase Plan as a means to help healthy banks recapitalize so they could lend again and pump liquidity through the financial markets. But AIG is an ailing insurer, which lost more than $24 billion in the most recent quarter, and it certainly doesn't seem to be in a position to lend money.

Moreover, there are many troubled firms that want the government's aid. In September, Congress authorized automakers to receive a separate $25 billion in loans to pay for investments in energy-saving vehicles. However, with the Energy Department still considering how these loans are to be made available, automakers are looking for other government resources.

Detroit is now looking for an additional $25 billion in emergency loans to help General Motors (nyse: GM - news - people ), Ford Motor (nyse: F - news - people ) and Chrysler from going under.

If Uncle Sam is to give Detroit another lift, it possibly could come through a fiscal stimulus package that Congress is now considering. Separate from the bailout, the stimulus package would likely allocate as much as $100 billion on infrastructure investments, aid to states and other broad measures.

If Congress takes that route, it might be a good thing for the TARP. With nearly $300 billion already spoken for, Treasury's only choice is to spend the rest wisely.
Posted by CEOinIRVINE
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