Wednesday, April 21, 2010
April 20 (Bloomberg) -- American International Group Inc., the financial firm rescued by the U.S., is the lead insurer of Goldman Sachs Group Inc.’s board against shareholder lawsuits, said a person with knowledge of the policy.
AIG is among firms that sold so-called Side A directors and officers’ coverage to the New York-based bank, said the person, who declined to be identified because details of the policy are private. Goldman Sachs was sued last week by the Securities and Exchange Commission, which claimed it misled investors in 2007.
AIG, along with insurers including Chubb Corp. and XL Capital Ltd., sell so-called Side A policies. The coverage kicks in when shareholders accuse directors of wasting a company’s money through failing to perform oversight duties or if the company becomes insolvent. Goldman Sachs, the most profitable bank in Wall Street history, said today that first-quarter earnings almost doubled to $3.46 billion from a year earlier.