Tags: US | Treasury | AIG | Directors

Treasury Appoints Two Retired Execs to AIG Board

Friday, 02 Apr 2010 09:44 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The Treasury Department has appointed a former banking executive and a former high-tech CEO to the board of directors of insurance giant American International Group Inc.

Donald Layton and Ronald Rittenmeyer will serve as directors as AIG strives to repay a government bailout package that totaled $182 billion, Treasury announced Thursday.

Layton is a former JPMorgan Chase & Co. vice chairman who worked at the bank for 29 years. He served in 2008 and 2009 as chairman and CEO of ETrade Financial Corp.

Rittenmeyer is former chairman, president and CEO of the technology systems firm Electronic Data Systems Inc. He presided over that company's sale to Hewlett-Packard in 2008.

The government owns nearly 80 percent of AIG after the bailouts. Yet officials mostly keep their distance from the company, which became a symbol of risky business practices and excessive pay on Wall Street.

Treasury has the right to appoint two AIG directors because AIG missed four of the quarterly dividend payments Treasury collects from most bailed-out companies.

AIG is one of a handful of companies whose bailouts are expected to cost taxpayers more than $100 billion.

Officials feared AIG's failure could topple banks that bought its insurance-like protection against investment losses. If other banks knew AIG was unable to meet its obligations, that would cause panic and the credit crisis would spread, officials warned.

Layton already is a director at one company that sells those products, called credit-default swaps. He has been a director of Assured Guaranty Corp. since 2006, and chairs that board's risk oversight committee.

Treasury retained the executive search firm KornFerry to help it identify potential directors.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

ISIS Downs Syrian Plane As Fighting Intensifies

Wednesday, 17 Sep 2014 07:13 AM

United States efforts to strike at Islamic State fighters, while not benefiting al-Qaida-affiliated groups or the Syrian . . .

Gen. Dempsey: Half of Iraqi Army Worthless as US Partners

Wednesday, 17 Sep 2014 06:52 AM

About half of Iraq's army is incapable of partnering effectively with the U.S. to roll back the Islamic State group's te . . .

Wary Lawmakers Likely to OK Obama ISIS Plan Wednesday

Wednesday, 17 Sep 2014 06:44 AM

Wary House lawmakers are on track to give President Barack Obama authority to order U.S. military training and arms for  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved