Report: AIG Rebuffs CEO Benmosche’s Request for Private Jet

September 17, 2009

Bailed-out insurer AIG told its new chief executive Robert Benmosche that he could not use the company-owned jet for his personal use, Bloomberg News reported.

Citing unnamed sources, Bloomberg said AIG’s board told Benmosche he would only be able to fly on company aircraft for business trips because any other use would require the exemption of the U.S. Treasury.

Benmosche had told the board he should be allowed personal use of a corporate jet, according to the report.

The board met with Benmosche, who was appointed CEO on Aug. 10, on Tuesday.

Benmosche has raised eyebrows since he arrived at AIG, for remarks that were critical of U.S. lawmakers, and for his decision to leave within days of his appointment for an extended vacation at his villa in Croatia.

U.S. taxpayers, through the Federal Reserve and Treasury Department, have given up to $180 billion in aid to the insurer, subjecting AIG to closer scrutiny.

American International Group Inc., once the world’s largest insurer, was rescued by the massive taxpayer bailout one year ago, after it ran out of the cash it needed to satisfy collateral calls related to derivatives linked to the U.S. housing market.

Latest Comments

  • September 23, 2009 at 5:41 am
    Reason says:
    1. AIG should have been allowed to die along with all the greedy SOBs that created the mess in the first place. 2. If Benmosche is so rich and important he can pay for his own... read more
  • September 17, 2009 at 5:14 am
    Karl Maax says:
    AIG needs to be selling the jets, cars, furniture, artwork, whatever of value, to pay off their debt to the american people. Then and only then should they think about anythi... read more
  • September 17, 2009 at 3:19 am
    Dan says:
    You're on. I doubt we'll have to wait too long before the verdict is in
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