AIG `Shouldn't Exist,' Ex-Chairman Says, Urging Breakup

[Donnachaidh]

http://www.bloomberg.com/news/2011-01-27/aig-shouldn-t-exist-ex-chairman-golub-says-urging-breakup-of-insurer.html

Harvey Golub, the former chairman of American International Group Inc., said the bailed-out U.S. insurer should be broken up eventually because the firm’s two main businesses have “no strategic fit between them.”

“Longer-term, AIG shouldn’t exist,” Golub said in an interview airing today on Bloomberg Television’s “In the Loop with Betty Liu.” The New York-based company should be split, making independent firms of its Chartis property-casualty unit and SunAmerica Financial Group life insurer, Golub said.

“When it gets broken apart, as I think ultimately it will, both of those pieces may unlock much greater value,” Golub said in the interview.

Chief Executive Officer Robert Benmosche is reshaping AIG, once the world’s biggest insurer, to repay a $182.3 billion government rescue. He’s enticing investors to purchase the U.S. Treasury Department’s 92 percent stake by presenting the firm as a global property-casualty carrier and a U.S. seller of life insurance. That strategy probably won’t last, Golub said.

More at the link --

[damntexdem]

1. I agree: Answers in Genesis shouldn't exist.

Oh yeah, and that financial group AIG, too.

;-)

[xchrom]

2. and here's the reason:

'both of those pieces may unlock much greater value,” Golub said in the interview.'

greater wealth and probably power from a break up.

:eyes:

[cbdo2007]

3. Good catch - it seems like people are Rec'ing this because they think it's punitive...

It's someone from the company saying they would make much more money as two entities rather than one.