Fed Considers AIG Bailout; Ex-CEO Weighs Proxy Fight

Hank Greenberg, forced out in 2005, among investors mulling options
By Ambreen Ali,  Newser User
Posted Sep 16, 2008 3:55 PM CDT
AIG investors are exploring options to take control of the insurer.   (AP Photo/Mark Lennihan)
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(Newser) – Reversing course, the Fed is considering a bailout package to help boost the liquidity of suddenly beleaguered AIG, even as the mega-insurer's ex-CEO considers a move to take control through a proxy fight or buyout, Bloomberg reports. In a regulatory filing, Hank Greenberg, who retired under pressure in 2005, says he and other investors may also acquire subsidiaries or make loans to the company.

"AIG was his baby—they took it away from him, and he's been trying to find a way to get it back. This is a perfect opportunity,'' a business professor says of Greenberg, who joined AIG in 1960 and has lost $16 billion on his 11% stake in the company this year. AIG closed at $3.75 today, a 21% loss, after dropping as low as $1.25.