Benmosche, controversial previous AIG CEO, dies

Robert Benmosche, who ran insurer AIG in the wake of its federal bailout, has died after a long sickness.

Benmosche, 70, had gone through treatment for cancer considering that 2010, according to a statement from AIG. He died at a New York healthcare facility Friday early morning with his family at his aspect, in accordance to the assertion. He had remaining the company in August owing to his terminal most cancers analysis . A assertion from his loved ones referred to his “streetwise self-self-assurance.”

AIG was bailed out by the federal government in September 2008 owing to fears that its personal bankruptcy would bring down many key Wall Avenue banking institutions that have been currently having difficulties in the fiscal meltdown at the time. It was one of the most high-priced bailouts of the monetary crisis. A total of $ 152 billion in taxpayer cash was utilised to conserve the firm.

Benmosche was a brash and often controversial determine in the course of his time in cost of AIG. A former CEO of MetLife ( Met ) , he was recruited out of retirement to operate the then govt-owned insurance company in August 2009, about a calendar year right after the bailout. He negotiated a $ 10.five million a yr spend bundle, but nonetheless complained about government limitations on executive spend. At one particular position Benmosche threatened to give up owing to the pay out restrictions. A single of his first moves in the job was to take a two-7 days holiday to his summer time property in Croatia.

AIG continues its incredible comeback

His steps and statements prompted members of Congress to phone for his removing. He was referred to as America’s most tone-deaf CEO in the media, such as by CNNMoney. But he did assist switch close to the firm to make it profitable when yet again and oversaw the sale of some of its property that sooner or later netted taxpayers a almost $ 23 billion revenue on the rescue.

But even soon after the federal government marketed off the final of its shares, Benmosche remained a controversial and polarizing figure. In 2013, he explained that public criticism of AIG’s bonuses in the wake of the fiscal disaster was ” just as bad” as lynchings for the duration of the fight above civil legal rights. He subsequently apologized for that remark.

— CNNMoney’s David Goldman contributed to this report

CNNMoney (New York) February 27, 2015: 2:40 PM ET

Tagged as: