Only One Man Can Replace Liddy At AIG (AIG)

American International Group, Inc. (NYSE: AIG) has announced that Chairman and CEO Ed Liddy will be stepping down.  He is actually waiting for the board of directors to conclude a search for a replacement.  No one will be sorry to see Liddy leave, but it is important to understand that none of the old problems of AIG were as a result of Liddy’s actions.  He was essentially a government appointee and it is a wonder as to why on earth he was even willing to take the CEO and Chairman role in the first place.  Liddy’s biggest controversy was the scandal over bonuses paid to employees following the government bailout, but he claimed this was under the government’s approval.  As far as Liddy’s actions in the company before and after that, it was generally with the government endorsement even if negative publicity was given simultaneously.

It is hard to imagine who would want to step in and take over at AIG now.  It is a wreck, and by now everyone under the sun is tired of the AIG saga.  Could you imagine telling your friends and family you wanted to go head up AIG now?  But there is one man who might like to step back in here.  Hank Greenberg has been very critical the entire way through this whole process.  He was ousted, and much against his will.

As far as what the chances are that the government would let Greenberg back in, they are probably slim to none.  Slim might have even left town.  He is at odds with the government over the sale of assets on the cheap and the dismantling of the company at a rate where paying back the government is unlikely.  Either way, we’d expect that Methuselah will come knocking to see if he will at least be allowed inside the door.

Greenberg might be the only one with the desire to run the company.

JON C. OGG
May 21, 2009