(Adds details on two appointee, AIG background)
By Corbett B. Daly
WASHINGTON, April 1 The U.S. Treasury
Department on Thursday named two former executives of E*Trade
Financial and Electronic Data Systems to serve on the the board
of directors of American International Group (AIG.N), the
insurer bailed out by the federal government.
The appointments are Donald Layton, former chief executive
of E*Trade Financial, and Ronald Rittenmeyer, former chief
executive of Electronic Data Systems.
Treasury said it exercised its right to appoint directors
because AIG failed to pay dividends for four quarters on the
AIG preferred stock acquired by Treasury in its massive bailout
of the insurer.
"We are confident that these appointees will make
significant contributions to AIG's strategy to de-lever,
de-risk, pay back taxpayers," said Herb Allison, Treasury's
assistant secretary for financial institutions.
The government owns 79.9 percent of AIG after having
committed more than $180 billion of taxpayer funds into the
company since rescuing the company at the height of the
financial crisis in September 2008.
Layton was E*Trade's chairman and chief executive from
March 2008 until December 2009 after he retired in 2004 as a
top executive at JP Morgan Chase. He is currently a director of
Assured Guaranty Ltd.
Rittenmeyer held a host of senior positions at Electronic
Data Systems from July 2005 to December 2008.
The government is likely to follow an exit strategy similar
to what it has used so far with Citigroup (C.N) to untangle
itself from AIG, a source familiar with the matter told Reuters
AIG has struck separate deals to sell its Asian unit,
American International Assurance (AIA) to Britain's Prudential
Plc (PRU.L) its foreign life insurance unit American Life
Insurance Co (Alico) to MetLife Inc(MET.N), the largest
publicly traded U.S. life insurer.
(Additional reporting by Paritosh Bansal and David Lawder;
Editing by Leslie Adler)