• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

AIG CEO: I Intend to Repay Taxpayers

A

Anonymous

Guest
New AIG CEO: I Intend to Repay Taxpayers

Thursday, August 20, 2009 11:06 AM

NEW YORK -- Robert Benmosche, the newly appointed chief executive officer of AIG, says he expects the bailed-out insurer to be able to repay its federal debts and boost value for shareholders, according to a report by Bloomberg News.


"At the end of the day, we believe we will be able to pay back the government and we hope we will be able to do something for our shareholders as well," Benmosche said in an interview with Bloomberg while on holiday in Croatia.


"My first charge is to get the company to operate at the level it used to operate, being the world's best," he said, according to the report. "The fact is we owe the U.S. government a lot of money and we are not going to be able to pay it back just by our profits, so we will sell some of the company off but only at the right time at the right price."


Benmosche, 65, took up the CEO post on August 10. He had previously been CEO of MetLife Inc (MET.N: Quote, Profile, Research, Stock Buzz), the largest U.S. life insurer. He came out of retirement to take AIG's helm.


AIG, once the world's biggest insurer, was saved from bankruptcy by a federal bailout last September. The company was on the verge of collapse from massive losses on derivatives linked to the subprime mortgage crisis.


Amid its financial problems, the value of AIG shares sank, and the bailout resulted in taxpayers getting a nearly 80 percent stake, heavily diluting shareholders.


Benmosche's task is to repay more than $80 billion in loans from the U.S. Federal Reserve and Treasury while keeping AIG stable.


AIG shares were up 13.9 percent at $30.34 in morning trading, their highest level since a 20-to-1 reverse stock split on July 1, according to Reuters data.
 
Top