The former CEO of AIG, Maurice "Hank" Greenberg, stated that with every passing day, the restrictions on the bailout loan are pushing AIG closer to failure. In a letter to CEO Edward Liddy, he said, "Time is clearly running out." He told him that is was imperative that AIG began talks about renegotiating the loan. Additionally, Greenberg said that to government was effectively nationalizing the company. The government could receive up to an 80 percent stake in the company.
Greenberg also said that taxpayers, employees, and investors in the company could be hurt with losses that could be incurred under the current loan arrangement. He is concerned that with the current loan structure AIG is being forced to sell assets and that is very hard under the current economic conditions. He said that this indicates that there is “little hope” that the loan will be able to be repaid.
http://www.reuters.com/article/businessNews/idUSTRE49T9SR20081030?feedType=RSS&feedName=businessNews
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