A.I.G. Chief Owns More $3 Million Stake in Goldman
NYTimes.com
By MARY WILLIAMS WALSH
Published: April 16, 2009Edward Liddy, the dollar-a-year chief executive leading the American International Group since its bailout
last fall, still owns a significant stake in Goldman Sachs, one of the insurer’s trading partners that was made whole by the government bailout of A.I.G.
Mr. Liddy earned most of his holdings in Goldman, worth more than $3 million total, as compensation for serving on the bank’s board and its audit committee until he stepped down in September to take the job at A.I.G. He moved to A.I.G. at the request of Henry M. Paulson Jr., then the Treasury secretary and also a former Goldman director.
Details about his holdings were disclosed in Goldman’s proxy statement and confirmed by an A.I.G. spokeswoman. Mr. Liddy had already owned some stock in Goldman Sachs before joining its board in 2003.
He has said that he considers his work at A.I.G. to be a public service, performed on behalf of the taxpayers, who ended up with nearly 80 percent of the insurance company. His goal is to dismantle the company and sell its operating units, using the proceeds to pay back the rescue loans. On Thursday, A.I.G. said it had sold its car insurance unit, 21st Century Insurance, to Zurich Financial Services Group for $1.9 billion.
Along the way, Mr. Liddy has clearly disclosed that A.I.G. was serving as a kind of conduit, with much of the rescue money passing through and ending up in the hands of A.I.G.’s trading partners.
Still, his stake could represent a potential conflict and is likely to reignite questions about Goldman’s involvement in A.I.G., and about why taxpayer money was used to shield A.I.G.’s trading partners from losses, when asset values plunged everywhere and most investors suffered greatly.
read full article… A.I.G. Chief Owns Goldman Stake Worth More Than $3 Million – NYTimes.com.
So, this just reminds us that Paulson tags his Audit Buddy Liddy to FIX AIG in Sept 2008.. you can not make this stuff up… joe
