AIG CEO Signs Non-Compete Deal (WSJ)
After the little boardroom outburst a couple weeks ago, and the threat to quit, AIG CEO Robert Benmosche promised his flock he’d never leave them. Now that they have it signed and in writing (and they approved his pay), everyone believes him. Benmosche “is committed to leading this company as CEO until the job is done,” AIG Chairman Harvey Golub said in an interview following a board meeting on Tuesday. “The board is very satisfied that the commitment is real and heartfelt.”
UBS, Ernst & Young Face Luxembourg Test Cases Over Madoff Funds (Bloomberg)
Private and institutional investors who lost money through Access International Advisors LLC’s LuxAlpha Sicav-American Selection are suing UBS and Ernst & Young for “seriously neglecting” their supervisory duties of the fund. A Luxembourg court will decide in hearings starting today whether investors have the right to bring direct claims against the fund’s custodian and auditor.
IMF Chief: Half Of Banks’ Losses May Be Unknown (Reuters)
“There are still some important losses that have not been unveiled. It’s possible that 50 percent (of bank losses) are still hidden in their balance sheets. The proportion is greater in Europe than in the United States,” Dominique Strauss-Kahn, said.
Hedge Funds Set For Rebound to Pre-Crisis Level?
Morgan Stanley says yes.
Rajaratnam’s Brother Drew Scrutiny (WSJ)
Both Rajaratnma’s brothers have been investigated for insider trading. No big deal.