Friday, April 17, 2009

A Very Intertwined World

That's the world of high finance. Today's example is Edward Liddy, the fellow serving as CEO of AIG for a mere $1 a year. It so happens that Mr. Liddy resigned from the Goldman Sachs board upon being nominated by Paulson, former head of Goldman, to head AIG. At the time Liddy owned 27,000 shares of Goldman. He still owns the stock which is worth today over $3,000,000.

You may recall that Goldman was one of the counterparties of AIG that was made whole via the TARP funds given to AIG. Did Liddy's relatioship to Goldman figure in this at all? At a minimum should Liddy have had to sell his Goldman stock before he became head of AIG?

1 comment:

Anonymous said...

dude - this is exactly the kind of stuff these guys are good at - this is not a big corporate world, all this finance stuff - these guys all know each other and take care of one another and serve their own interests - that's capitalism!