*Eli Broad and AIG

The L.A. billionaire - and major shareholder of the tottering insurance giant could get involved during a meeting later today of other big-money investors. They're not happy with the $85 billion loan agreement worked out last week with the feds that prevented the company from filing for bankruptcy. Many of them would rather not have the government take over 80 percent of the company - a very bad deal for shareholders - and instead pay off the loan as quickly as possible through asset sales. That would keep AIG functioning as a private entity. Among those representing shareholders are Mickey Kantor, a cabinet member under former President Bill Clinton, and super-lawyer David Boies (he's with former CEO Hank Greenberg). Last May, Broad and other big shareholders expressed concerns when the stock began heading downward. Broad was CEO of SunAmerica, which AIG acquired some years back. His AIG stake has taken a huge hit in just the last couple of weeks. (Bloomberg, WSJ)

*The L.A. Business Journal reports that Broad owned 27 million shares of AIG as of June - at the time worth $800 million. As of late last week, that stock would be worth $72 million. Broad was No. 3 on the paper's list of Wealthiest Angelenos, with an estimated net worth last May of $6.9 billion.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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