This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Peter Hancock, Ex-JPMorgan Derivatives Wizard, Chosen as AIG CEO

NEW YORK ( TheStreet) -- American International Group (AIG - Get Report) tapped longtime J.P. Morgan executive Peter Hancock as its new CEO, choosing a man with scant background in insurance but deep experience in the type of complex financial instruments that forced the giant company to take a $182 billion bailout.

Hancock, 55, spent 20 years at the predecessor to what is now JPMorgan Chase (JPM - Get Report), founding its global derivatives group and rising to chief risk officer and CFO before resigning in 2000.

The selection, while not unexpected, still indicates a big departure, according to Roddy Boyd, author of the book "Fatal Risk: A Cautionary Tale of AIG's Corporate Suicide."

"For years anybody who ran any major unit at AIG unless it was administrative or clearly a trading desk was an insurance guy. That's all gone, and they're clearly signalling that AIG's future although clearly it will be an insurance company in dozens of different ways, the person running AIG has got to be a truly financial Wall Street savvy guy," says Boyd.

Hancock has been with AIG since 2010, spending most of that time as head of its property and casualty business.

He  had been reported last month to be one of two finalists for the position along with Jay Wintrob, head of AIG's life insurance and retirement business, according to  The Wall Street Journal.

Hancock will succeed Robert Benmosche effective Sept. 1. Benmosche, 70, is widely credited with turning around AIG after it received a $182 billion bailout, the result of taking on too much derivatives exposure.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AIG $56.94 -0.08%
JPM $62.64 0.06%
AAPL $132.59 1.80%
FB $82.31 0.96%
GOOG $555.10 -1.80%


DOW 18,070.57 -9.57 -0.05%
S&P 500 2,112.21 -5.48 -0.26%
NASDAQ 5,065.7180 -26.3670 -0.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs