NEWSMAKER-AIG CEO Willumstad loses reins he barely held
By Jonathan Stempel
NEW YORK, Sept 17 (Reuters) - When he left Citigroup Inc in 2005, Robert Willumstad said he wanted to run a publicly-traded financial services company. He got that chance, as chief executive of American International Group Inc (AIG.N: Cotización).
For three months.
Willumstad will lose his job at the helm of AIG, according to a person briefed on the matter, in connection with the U.S. government's $85 billion rescue package for the giant insurer.
He will be replaced by Edward Liddy, a former chief executive of the insurer Allstate Corp (ALL.N: Cotización), said another person briefed on the matter.
Neither AIG nor Willumstad was immediately available for comment.
AIG on Tuesday received a two-year loan of up to $85 billion from the U.S. Federal Reserve so it can pay its bills, and sell assets with what the central bank called the "least possible" disruption to the broader economy. [ID:nHKG15677]
The U.S. government will take a 79.9 percent equity stake in AIG, which has about $1.05 trillion of assets and employs 116,000 people in well over 100 countries.
AIG was once the world's largest insurer by market value, but lost that crown as it amassed $18 billion of losses over three quarters, tied to complex securities whose value plunged as the nation's housing crisis deepened. Continuación...