AIG's risk management team largely intact

Deborah Cornwall, managing director at the Corlund Group, said finding executives with the appropriate skills could be a problem for firms owned by the government, given restrictions placed on compensation packages, The Wall Street Journal reported Friday.

At AIG, the Credit Risk Committee has remained largely intact, in spite of the terms in a $40 billion government loan in November that required the company to create a new risk management committee, the Journal said.

In a statement, AIG said it was "committed to strong risk management."
"Recently, consistent with the terms of the U.S. Treasury's preferred investment in AIG, the company has clarified the authority regarding the board's now-named Finance and Risk Committee," the statement said.

But, the committee still includes Robert Lewis, who has been the company's chief risk officer since 2004. AIG's Chief Credit Officer Kevin McGinn, chief of AIG Investments Win Neuger, and head of AIG's financial services division William Dooley are also longtime members, the Journal said.

The Journal said an AIG spokeswoman said five of the risk-committee members declined to comment.

Copyright 2009 by United Press International.