Embattled AIG CEO Steps Down

Board replaces Sullivan with Citi exec Willumstad
By Caroline Zimmerman,  Newser User
Posted Jun 15, 2008 3:43 PM CDT
The headquarters of the American International Group Inc. is shown in this March 1, 2007 file photo in New York.    (Associated Press)
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(Newser) – Martin Sullivan has stepped down as AIG's CEO, and the company's board named chairman Maurice Willumstad his successor, insiders tell the Wall Street Journal. The insurance giant's stock has plummeted more than 50% since October due to subprime writedowns, and Sullivan is still embroiled in legal battles with his former boss. The new chief may start with a clean slate, but the state of American real estate remains daunting. (Read more subprime crisis stories.)