The Buzz: AIG’s Willumstad to be Replaced with Allstate’s Edward Liddy

According to people familiar with the matter, as part of the U.S. government's rescue of the insurer, American International Group Inc. (AIG) Chief Executive Officer Robert Willumstad will be replaced by former Allstate Corp. chief Edward Liddy. 
 
The Wall Street Journal reported that Treasury Secretary Henry Paulson insisted that Mr. Willumstad step aside as part of a deal in which the Federal Reserve Bank will provide AIG with an $85 billion bridge loan in exchange for taking nearly an 80% stake in the troubled company. 
 
Mr. Willumstad has served as AIG's CEO since the June ousting of previous chief Martin Sullivan. Mr. Liddy would be AIG's fourth CEO since 2005. 
 
AIG declined to comment.

Published on September 17, 2008