AIG Has Plenty of Assets to Cover Loan: Former CEO
Robert Willumstad, former CEO of American International Group, said the company has “more than enough” assets to cover the $85 billion loan it received from the U.S. government without it becoming a massive issue for taxpayers.
Willumstad served as CEO of AIG from June 2008 to September 2008 and voluntarily gave up the $22 million severance package that was entitled to him after he left the company.
AIG has faced scrutiny for recent spending that critics have called excessive given the company's need for a federal bailout to avoid bankruptcy.
(Watch the accompanying video for the full interview with Robert Willumstad...)
On Wednesday, the Associated Press reported that AIG executives spent thousands of dollars on an English hunting trip, even as the firm was asking for a $37.8 billion loan from the Federal Reserve in addition to the $85 billion the company had already received.
Last month, days after the government stepped in to bail out the company, AIG picked up a $440,000 tab for a week-long retreat at a posh California resort for top-performing insurance agents.