Chinese insurance company to buy some AIG assets

Chinese insurance company to buy some AIG assets

Look at it the Chinese insurance company which heavily owned by the China goverment is buying AIG.

Mebbe dey gonna pay him in yuan?...
:p
AIG chief slashes salary to $1
November 25, 2008: Top executives agreed to a series of pay restrictions, including canceling bonuses, as the troubled insurer struggles to stay afloat.

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AIG Chief Executive Edward Liddy agreed to slash his annual salary to $1 as part of a series of voluntary pay restrictions by top executives tied to a massive $150 billion government bailout. AIG will also forgo bonuses this year and eliminate pay increases through 2009 for the firm’s top executives. Liddy will get paid $1 per year for 2008 and 2009, with his compensation consisting entirely of equity payments. While he will not receive bonuses during those years, he will be eligible in 2010 for “extraordinary performance." He will also be ineligible for severance payments.

“This action by the senior management team demonstrates not only that we understand our obligation to taxpayers and shareholders, but also that we are committed to the future success of this organization," said Liddy in a statement. In addition to Liddy, Paula Reynolds, whom AIG hired as chief restructuring officer in October, will receive no salary or bonuses in 2008. From 2009 onward, any compensation above her base pay will be tied to the progress of AIG’s restructuring.

“It is only fair that top executives, who benefit the most when firms do well, should also bear the burden of the difficult economic consequences their firms now face," said New York state Attorney General Andrew Cuomo in response to a letter from Liddy informing him of the pay cuts. Cuomo had voiced concern about AIG’s expenditures in October after it was reported that the company had spent $440,000 on a weekend meeting at a resort. Subsequently, AIG immediately cancelled 160 events, worth an estimated $8 million.

[url=http://money.cnn.com/2008/11/25/news/companies/aig_ceo/index.htm:
Government help:[/url]

See also:

Obama: Bank execs should skip bonuses
26 Nov.`08 - In ABC interview, says they should make sacrifices along with workers

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President-elect Barack Obama thinks bank executives should forgo their bonuses this year to show they are taking responsibility amid difficult economic times. In an interview with Barbara Walters to air Wednesday, Obama also said he is trying to keep his BlackBerry or find another way to “break through the isolation and the bubble that exists around the president." Obama talked about a range of topics in Tuesday’s interview, including troop deployments in Afghanistan and Thanksgiving holiday plans with his family, ABC News said. He also discussed the adjustment of moving into the White House with his wife, Michelle, and their two daughters.

According to excerpts of the interview released by ABC, Obama said bank executives should make sacrifices because so many other people are struggling as the U.S. economy slips further. Some financial firms, including Goldman Sachs, the Swiss bank UBS and the British bank Barclays, have said they are not handing out annual bonuses to top executives, and Obama encouraged more to follow. “I think that if you are already worth tens of millions of dollars, and you are having to lay off workers," Obama said, “the least you can do is say, 'I’m willing to make some sacrifice as well, because I recognize that there are people who are a lot less well off, who are going through some pretty tough times.'"

Obama also said the heads of the three auto companies who came to Washington asking for a bailout are a “little tone deaf” to what’s going on in the country. It was the second time this week he has had harsh words for Ford Motor Co., Chrysler LLC and General Motors Corp. The struggling companies are pressing Congress for $25 billion in government loans. During a news conference Monday, Obama said the Big Three may deserve some assistance, but taxpayers cannot be expected to blindly support an auto industry “that has been resistant to change."

More [url:
http://www.msnbc.msn.com/id/27919666/[/url]

Granny says, “Purt soon dem Arabs gonna own all the banks...
:eek:
AIG Sells AIG Private Bank to Abu Dhabi Firm
Monday, December 01, 2008 - American International Group Inc. on Monday said it has agreed to sell its wealth management arm AIG Private Bank Ltd. to Aabar Investments PJSC of Abu Dhabi.

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Terms of the deal, which is part of the New York-based insurance company’s restructuring plans, were not disclosed. Under its new ownership, AIG Private Bank will become an independent financial institution, headquartered in Switzerland along with branches and representative offices in Hong Kong, Shanghai, Singapore and Dubai.

The wealth management company will conduct business under a new name and will continue to focus on providing wealth management services. “This sends a clear message to our customers that we will continue to be a trustworthy, reliable and competent partner for them," Chief Executive Eduardo Leemann of AIG Private Bank said in a statement. Leemann and his senior management team will remain with the bank, AIG said.

Faced with a liquidity crunch, AIG said in October it would sell off a number of business units to pay off a $85 billion government loan. The insurer’s total government assistance has now risen to about $150 billion. The company has not specifically disclosed the assets it would sell or the expected prices from the sales. However, AIG has said it plans to retain its U.S. property and casualty and foreign general insurance businesses, and plans to retain an ownership interest in its foreign life insurance operations.

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http://www.cnsnews.com/public/content/article.aspx?RsrcID=40093[/url]