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Liddy to leave AIG

New York -- Edward Liddy, chosen last year by the Federal Reserve to run U.S. insurance giant AIG, announced his resignation Thursday.

New York -- Edward Liddy, chosen last year by the Federal Reserve to run U.S. insurance giant AIG, announced his resignation Thursday.

Liddy, who was criticized for paying billions of dollars in bonuses after the company received even more billions in federal assistance, said he would stay on until the AIG board finds a successor, CNN Money reported.

Given that restoring AIG to health is likely to be the work of years, Liddy said the company needs top leadership prepared to stay on until the job is done.

"Much work remains to be done at AIG, but much has already been accomplished," he said in a statement.

Liddy, who took over the company in September, is both chief executive officer and chairman. However, he said different people should hold the two jobs going forward.

"He stabilized the company, reduced its risk issues, and instituted a plan to pay back the taxpayers," AIG spokesman Mark Herr said. "He decided now the time is right for someone else to oversee the next phase for the company."

Copyright 2009 by United Press International.

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