Monday, May 10, 2010

A.I.G. Said to Dismiss Goldman

A.I.G. Said to Dismiss Goldman

http://compliancex.typepad.com/compliancex/2010/05/aig-said-to-dismiss-goldman.html

Louise Story and Eric Dash, The New York Times, May 6, 2010


Investors and corporate clients such as AIG have become increasingly concerned over Goldman Sachs legal issues.So far, AIG is the only major corporate client to leave the firm.

As its legal troubles mount, Goldman Sachs is losing a big corporate client: the American International Group.

A.I.G., the insurance giant that planned to retain Goldman to help reorganize its businesses, has replaced Goldman as its main corporate adviser, according to three people with knowledge of the matter, which was not intended to be public. Instead, the insurer is turning to Citigroup and Bank of America.

The move is the first in what some analysts warn could be a series of defections among Goldman’s clients after accusations — vigorously denied by Goldman — that it defrauded customers in a complex mortgage investment. A Goldman spokesman declined to comment.

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Blogger poses this question to the reader: What do AIG, BofA, and Citi all have in common?  With financial services quickly becoming a government-owned industry sector, could this move be a market strong-arm tactic like those of the industrial barons of the late 19th century?  Just askin'.

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