Predictably, the firm has also seen revenue and profits decline during the makeover. Greenberg presided over the build up of AIG Financial Products—the division that brought the firm to the brink by writing credit default swaps. Having run the firm for forty years, he was ousted in during an accounting scandal. It did not stop him from weighing in frequently during the financial crisis to criticize the government bailout and offer his own solutions.
He was especially critical of the asset sales saying they were destroying shareholder value, and that the market at the time prevented AIG from receiving a fair price for the businesses. During his time as CEO and Chairman, Greenberg created and administered an executive bonus plan that not only made many former executives rich, it also kept them at the insurance giant because receiving the payouts typically meant staying at the company for years after the bonuses were doled out.
Investors who have stuck by the company will be rewarded as part of the recapitalisation. This article is more than 10 years old. Bailed-out insurer to return to the stock market and could become the biggest offering in US history. Reuse this content.
By Ben Berkowitz , Clare Baldwin. A person familiar with the situation, who spoke on condition of anonymity, said the government and the company would talk this weekend about how many and which banks to pick as coordinators, with an announcement likely early next week.
The government stands to make a profit in the tens of billions of dollars on its AIG shares, given their appreciation over the last year. A person familiar with the situation told Reuters on Monday a large Treasury-AIG share sale was likely after mid-May, and other sources have said in the past that Treasury likely would dispose of the stake by
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