Why Is Obama Timid About AIG?

I’ve been pretty amazed at how silent the Obama administration has been about Robert Benmosche’s antics since becoming the well-compensated CEO of American International Group (AIG)–the defacto government owned insurer.

But after reading this story in The New York Times, I was shocked to learn that many in the Obama administration are wary of looking like they are injecting themselves into the company’s affairs. That’s the case, even though many on Team Obama are upset with Benmosche’s $9 million pay package and his desire to move slowly in selling AIG’s assets.

WTF? Intefere, please. The taxpayers didn’t bailout this company so its high-living CEO can do as he pleases. The Obama administration has never sought to put anyone on AIG’s board–maybe it should.

James Kwak at Baseline Scenario is equally puzzled and disturbed by the administration’s hands-off approach to AIG.

Comments

[rgc:]

How much is the government's stake in AIG worth? With the stock value it is trading at, I would hope the taxpayers that bailed AIG out have made a killing.

Sep 16 08:57 AM

[DannyBoy29:]

The gov owns 80% so it is worth 80% of the market cap. Remember AIG did a 1-20 reverse split so it is really only trading in the $2 range.


On Sep 16 08:57 AM rgc wrote:

> How much is the government's stake in AIG worth? With the stock value
> it is trading at, I would hope the taxpayers that bailed AIG out
> have made a killing.

Sep 16 09:48 AM

[Warm_Paw:]

Has the sub prime mess been choreographed so the Govt can buy at the bottom and ride these institutions back to glory and bring the country back into a surplus in time to have money for massive pension funding?
The SEC should investigate...
They're so thorough and strong.

Sep 16 05:18 PM