Saturday, May 23, 2009
Continuing Saga of AIG
Ed Liddy, just a 1/2 year into the job, is stepping down from AIG. Being told by Congressmen, who collectively never employed more than 100 people in their lives, that despite a $1 salary he was not doing a good enough job is apparently too much even for someone motivated by public service. This pathetic episode illustrates the dangers of government direct involvement in company management. If the Congress insists on taking ownership of companies on behalf of taxpayers, it should behave as a fiduciary. This means hiring and paying for the best managers for the taxpayers' companies. Of course this implies that Congress understands the meaning of fiduciary.