October 13, 2008
Government Delay in Control of AIG
AIG has spent over $120 billion of government money. Part of the exchange is government ownership, through senior convertible preferred stock, of 79.9 percent of the shareholder voting power. The catch? The government will act through a "trust" that holds the stock. Although AIG has spent our money, the trustees to the trust, that will control AIG management have yet to be appointed. We may get them in two weeks or so. Ten days after the trustees are appointed, AIG must change the composition of its board to satisfy the trustees. It would have been better had the trustees been in place when existing AIG managers spent our $120 billion.
October 13, 2008 | Permalink
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