AIG finally divests part of asset management business
The process that AIG (AIG) has gone through to sell businesses to help pay back nearly $180 million in taxpayer aid has been slow and fairly unsuccessful. That changed some on September 5 as its divested part of its asset management operation for $500 million. That is still a drop in the bucket , but at least it is a start.
The company announced that it has an "agreement to sell a portion of its investment advisory and asset management business to Bridge Partners, L.P., a company owned by Pacific Century Group."
AIG's new and controversial CEO Robert H. Benmosche has said that he plans to slow down selling off parts of the company to get maximum value. He has also stated that he will force investment bankers who advise AIG on divestitures to take less money. With the sales of the asset management unit, he may want to reconsider those goals. The taxpayers would like their money back.
Douglas A. McIntyre is an editor at 24/7 Wall St.