NEW YORK (
American International Group
got two new board directors for being delinquent on debt repayments to the federal government.
The Treasury Department appointed Donald Layton and Ronald Rittenmeyer to AIG's board on Thursday, exercising its right to do so after four quarters of missed dividend payments on $47 billion worth of preferred stock.
"These appointments underscore Treasury's commitment to effective stewardship of taxpayer dollars and interests," Herbert Allison, the agency's assistant secretary for financial stability, said in a statement. "We are confident that these appointees will make significant contributions to AIG's strategy to de-lever, de-risk and pay back taxpayers."
Layton is a veteran of
, where he served as chairman and CEO until December, as well as
, where he was a vice chairman. He's also on the board of the insurer
Rittenmeyer is former chairman, president and CEO of
Electronic Data Systems
, a technology services firm acquired by
report indicated that AIG may itself elect a third candidate, Henry Miller, the chairman of the investment bank Miller Buckfire.
AIG did not furnish an immediate statement.
Written by Lauren Tara LaCapra in New York