At its annual meeting, AIG (NYSE:AIG) Chief Executive Officer Robert Benmosche said they have their legal team going over the dealings the company had with Goldman Sachs (NYSE:GS) and others with CDOs during the financial crisis, which led to AIG being taken over by the Government, which resulted in them holding an 80 percent stake in the giant insurer.
Benmosche said to shareholders if they do find any wrongdoing on the part of any of the companies they did CDO business with, they’ll take the appropriate legal actions in response.
CDOs are complicated bond transactions which AIG had insured on behalf of Goldman and other companies.
Much of this is focused on Goldman Sachs because of the large amount of bailout money they received when American International Group was rescued by the government, most of which were connected to the CDOs insured by AIG.
AIG Chairman Harvey Golub said concerning their exposure to derivatives like those causing their collapse, that they were being wound down, and Benmosche added that much of their exposure and risk has been shrunk by the financial-products unit of AIG.
Even though AIG decided to go with Citigroup (NYSE:C) and Bank of America (NYSE:BAC) for restructuring advice, Golub stated they will continue to do business in other areas with Goldman Sachs, as they do some things better than anyone else does. He concluded that they were a “fine firm.”
