Things just aren't getting any better over at AIG, are they?
The struggling carrier forced out CEO Martin Sullivan earlier this week following two of the company's worst quarters ever. AIG's been bleeding red ink for a while and its tumbling share price reflects that: It's down roughly 40 percent since late last year.
But the bad news doesn't stop there. The Associated Press reports that AIG is also facing a federal investigation. The Securities and Exchange Commission is questioning whether AIG overstated the value of so-called credit default swaps.
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Following the ouster, the board promptly tapped chairman Robert Willumstad for the chief executive post, who came out firing. Willumstad has promised a thorough business review and turnaround strategy by September.
While those plans sound great, it might be prudent for shareholders to be patient, especially in this floundering economy. It's not exactly the best environment to engineer a dramatic comeback. Willumstad deserves a fair shot. I'm curious to see if he gets it.
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