Shareholders demand accounting from AIG

Three shareholders cited a “staggering breakdown of risk controls” and “an unequivocal loss of investor confidence.”
JUN 09, 2008
By  Bloomberg
A group of major shareholders at American International Group Inc. of New York have sent a chilly letter to the insurer’s board of directors, The Wall Street Journal reported. The May 12 missive was sent by Eli Broad, former director of the firm; Shelby Davis, founder of Davis Selected Advisers LP of Tucson, Ariz., and Bill Miller, chairman and chief investment officer of Legg Mason Capital Management of Baltimore, the Journal said. Citing a “staggering breakdown of risk controls” and “an unequivocal loss of investor confidence,” the shareholders requested a meeting with the board to discuss ways to revamp the firm’s senior management. Together, the three men control more than 100 million shares, or 4% of the company’s stock. The day after sending the letter, Mr. Broad, Mr. Davis and Mr. Davis’ son Christopher, a portfolio manager at the Davis firm, aired their grievances to AIG chairman Robert Willumstad. Though Mr. Willumstad told the men that the board is taking the matter “seriously,” he and the rest of the directors have kept Martin Sullivan, chief executive of AIG, on board. However, board insiders told the Journal that Mr. Sullivan needs to right the company’s course immediately.

Latest News

iCapital secures $820M in latest funding, hits $7.5B
iCapital secures $820M in latest funding, hits $7.5B

The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

What does it take to feel ‘financially comfortable’ or ‘wealthy’ in 2025?
What does it take to feel ‘financially comfortable’ or ‘wealthy’ in 2025?

New report shines a light on how Americans view wealth today.

Retirement delays, Social Security fears prompt advisors to rethink income strategies
Retirement delays, Social Security fears prompt advisors to rethink income strategies

Concerns about outliving savings and healthcare costs are reshaping how "Peak 65" Americans and advisors approach income planning.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.