AIG puts crisis-hit financial products unit into bankruptcy
AIG has put the business that caused billions of dollars of crisis-era losses into Chapter 11 bankruptcy protection, in an effort to limit the potential for former executives to claim bonuses.
In a filing on Wednesday, the US insurer said it had put AIG Financial Products into bankruptcy. The unit’s risky bets on credit default swaps were at the heart of the US government’s $182bn bailout of AIG in 2008 during the financial crisis.
Since then, AIG has been battling a group of former AIG FP executives in the US and UK, who claim they are owed millions of dollars in bonuses by the business.
This story originally appeared on: Financial Times - Author:Oliver Ralph
