Edward M. Liddy

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Edward M. Liddy

Edward M. Liddy is the former CEO of American International Group (AIG). He retired on August 10, 2009. He succeeded Robert B. Willumstad.

Liddy was installed as AIG’s chief executive when the government effectively nationalized the company in the fall of 2008. He was paid $1 a year.[1] He left partly because of a barrage of criticism from lawmakers and regulators over AIG's use of billions of dollars of taxpayers' money.[2]

AIG executive vice president in AIG's financial products unit, Jake Desantis, rendered his resignation letter to Liddy on March 24, 2009 in a letter published in The New York Times.[3]

Also in early March of 2009, AIG founder, Hank Greenberg, launched two separate salvos against his former company, accusing it of cheating him out of a fortune and blasting Liddy for trying to lay some of the blame for AIG's woes at Greenberg's feet. Greenberg sued AIG in Manhattan federal court, claiming execs at the insurer kept shares "artificially inflated" by lying about the company's exposure to subprime mortgages. He claimed those "material omissions and misrepresentations" killed the value of 3.7 million shares of AIG stock he got under a deferred-compensation package in January 2008. The lawsuit didn't specify damages, but demanded the $70 million in taxes he paid on the $200 million in stock.[4]

Background

Liddy spent several years as CEO of Allstate Insurance, a domestic automobile and home insurance company.[5]

Education

References

  1. The Case for Paying Out Bonuses at A.I.G.. The New York Times.
  2. Benmosche appointed AIG chief. Financial Times.
  3. Jake DeSantis: A Defense of AIG Bonuses. U.S. News & World Report.
  4. Greenberg Says AIG Ripped Him Off With Hyped Shares. New York Post.
  5. TNR Exclusive: An Interview with Former AIG CEO Hank Greenberg. The New Republic.