Goldstein Calls for AIG (AIG) To Be Broken Up and Thrown Into the Ash Heap of History

The late-afternoon weakness in American International Group, Inc. (NYSE: AIG) could be related to a column from Reuters Matthew Goldstein, calling for the "Obama administration to oversee the dismantling of the failed insurance giant with all due speed."

Goldstein said the GAO report raises serious doubt about whether AIG will ever be self-sufficient again, noting that "the company continues to rely heavily on the federal government as its source of liquidity and capital."

Goldstein also questions Representative Edolphus Towns motives in taking up the cause of former AIG CEO Hank Greenberg.

Goldstein said "the time for kowtowing to Greenberg must end." He said all this is doing is giving false hope to those investors who've been snapping up AIG's shares on the belief the insurer can turn itself around. He says "AIG can't and it won't."

Goldstein said it is time to break up AIG and move on, saying "AIG rightfully deserves to join Bear Stearns and Lehman Brothers on the ash heap of history."

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