A source in investment banking who is choosing to remain anonymous says that the futures of nearly 7,000 financial advisors and registered representatives responsible for generating some $1.3 billion in fees and commissions in 2007 will be decided by American International Group Inc’s large scale asset sale. Details of the sale could be announced as early as Friday by new AIG head Edward Liddy.
Published reports also say that AIG New York is thinking of selling over 15 business lines to repay the federal government for an $85 billion emergency loan.
AIG Advisor Group is made up of FSC Securities Corp, AIG Financial Advisors Inc., and Royal Alliance Associates Inc.
The unnamed source is also predicting that Liddy will retain the services of a Wall Street company to conduct a quiet auction for the broker-dealers and that aggressive bids from different firms, including Raymond James and LPL Financial are likely. According to other sources and recruiters, the Financial Services Network of San Mateo, California, which is one of the largest advisor groups affiliated with FSC Securities, could end up with LPL or one of its subsidiaries.
In an interview with the Wall Street Journal last month, AIG Chairman and CEO Liddy said that he expects the company will emerge from its current financial turmoil. Liddy was appointed to his new post two days after the federal government’s loan, intended to keep AIG from bankruptcy.
Related Web Resources:
Another Bailout: Government Lends AIG $85 Billion, NPR.org, September 17, 2008
AIG Advisor Group
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