For AIG, $1 Billion Down, Another $59 Billion To Go

For AIG, $1 Billion Down, Another $59 Billion To Go - 1/14/2009

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News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

For AIG, $1 Billion Down, Another $59 Billion To Go, But Insurer's Regulator Dinallo Backs Company's Methodical Approach To Selling Assets
Staff Writer

Reuters. January 14, 2009
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EXCERPT: New York insurance regulator Eric Dinallo, the man overseeing AIG’s sales of assets to repay a hefty government loan, on Tuesday said CEO Edward Liddy’s efforts to fix the insurer are beginning to pay off. Mr. Dinallo, AIG’s main regulator, vouched for Mr. Liddy’s efforts on the sidelines of an industry event late on Tuesday. Some lawmakers have criticised Mr. Liddy for AIG’s hosting of a costly executive retreat and a decision to pay retention bonuses to ward off staff defections. […] Mr. Dinallo said that nearly four months into the job Mr. Liddy was already engaged in transactions that would help the insurer pay down taxpayer debt. He gave Mr. Liddy the plug even as AIG’s retention payment plan proved less than successful. The insurer has in recent months lost key employees, including Kevin Kelley, a highly-respected executive who long led AIG unit Lexington Insurance Co. Mr. Liddy, who retired from home and auto insurer Allstate Corp last spring, was pressed into service at AIG by U.S. officials in September as taxpayers put up $85 billion to rescue the firm, and has accepted a first-year salary of $1. To date, Mr. Liddy has reached agreements for the sales ofU.S. specialty insurer HSB Group, a private bank in Switzerland and untangled several partnerships. Earlier this week, the insurer announced the sale of its Canadian life insurance unit to BMO Financial for about $300 million. That deal brings the grand total for AIG’s major asset sales to right around $1 billion. More asset sales are expected, including a large chunk of its life insurance operations, an asset management division, and what has been a highly profitable aircraft leasing business, to raise funds to repay a $60 billion loan, which is part of a total bailout that ballooned to about $150 billion in November.

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