Posted on 11 Nov 2009
American International Group Inc. (AIG) said Vice Chairman Jacob A. Frenkel retired Tuesday, after the economist delayed his departure as the government-controlled insurer recovered from its near collapse.
"Although he had been contemplating this change for some time, Jacob had agreed to stay on to help AIG through its challenges," Chief Executive Robert Benmosche said in a letter dated Tuesday. "Now that AIG has stabilized, Jacob has decided to move ahead with his retirement."
The news comes the same day as a Wall Street Journal report that Benmosche, frustrated by the government's constraints, told the board he is considering leaving the firm just three months after starting there.
Frankel, who joined AIG in May 2004, also served as the chairman of the company's global economic strategies group. Additionally, he is the chairman of the Group of 30, a consultative group of prominent economists and policy makers, and previously led the Bank of Israel.
AIG is in the midst of a long struggle to pay taxpayers back roughly $90 billion. It is trying to keep its businesses stable and its employees motivated while also planning numerous asset sales.