AIG confirms the loss of Directors at the Bank AIG

 

Tuesday, Mar 31,2009, 1:27:51 AM   Click:

(BestWire Services Via Acquire Media NewsEdge) American International Group Inc has confirmed that Mauro Gabriele, President and CEO of Paris-based Banque AIG, and Jim Shephard, vice-CEO, resigned from the company.


On 20 March Mr Shephard and Gabriele resigned from office in view of concerns about its ability to conduct business in the hostile environment to the Bank AIG AIG FP and employees in general? the company said in a statement. ? At the same time, they are fully committed to ensuring that the Bank AIG continues to operate normally and meet its obligations in these extraordinary circumstances, and therefore they remain in their roles and are committed to make an orderly transition . AIG said it had mentioned in his March 14 letter to U.S. Treasury Secretary Timothy Geithner that the resignations in the AIG Bank could increase the risks in derivatives, says the Bank of AIG, and that the company was in ongoing discussions with regulators in France and the United Kingdom, as well as the Federal Reserve Bank of New York and the U.S. Treasury Department in this regard.

The company has been severely criticized in recent weeks in the wake of the bailout deal with the U.S. government that was organized in September 2008. AIG has been particularly criticized for the payment of the bailout money. The company has undergone an intense reaction from the public and politicians over $ 165 million in retention bonuses it paid to employees of its financial products unit, who has written derivatives contracts which has pushed AIG to the brink of bankruptcy last year (BestWire 25 March 2009).


AIG said that a number of executives who work for its financial products division in Europe have volunteered for the recent return of withholding payment, including Gabriele and Shephard. It did not provide further information.

Most of the AIG insurance companies currently have a Best's financial strength rating of A (Excellent) with a negative outlook.

(By Marc Jones, London editor: marc.jones @ ambest.com) Copyright? 2009 h Best Company, Inc.