American International Group Inc. (AIG)’s Steve Miller Talks about JPMorgan Chase & Co (JPM) and Bank of America Corp (BAC)


JPMorgan Chase & Co (NYSE:JPM)’s CEO, Jamie Dimon, is one of the longest serving Wall-Street CEOs. Earlier this month he disclosed that he is diagnosed with throat cancer. He also said that his situation is treatable and he will continue to contribute in his role in the company. American International Group Inc. (NYSE:AIG)’s Chairman, Steve Miller, talked to Bloomberg’s Scarlet Fu, Adam Johnson and Tom Keene on how JPMorgan can cope up with this situation, impact in insurance world due to Ukraine situation and Settlement between AIG and Bank of America Corp (NYSE:BAC).


American International Group Inc. (NYSE:AIG) CEO, Robert Benmosche, was diagnosed with cancer back in 2010 and he continued to contribute to the company amidst all the treatment that he got. Miller thinks that under such situation the board should plan for the worst scenario, which is, treatment not going as planned. He feels that JPMorgan has already made short-term, medium-term and long-term succession plan for such scenario.

American International Group Inc. (NYSE:AIG)’s Chairman said that under such situation, all the facts, pro’s and con’s along with the abatement plans has to be clearly stated to the investor in a manner in which they understand. This method of handling the situation will make sure that there is no speculation in the air and will keep the story short among investors. He feels that JPMorgan Chase & Co (NYSE:JPM) has done the right thing by stating all that is possible.

“In our American system, disclosure trumps everything. If it’s important, you need to get it out in a way that the investor can understand,” he said on need to disclose the information to investors.

Regarding the Ukraine situation, Miller said that as an insurance company they would make sure that the claims are validated and granted as fast as possible, but in that process detailed information about the damage will be evaluated and it will not be compromised for quick processing.

Miller also said that the reputation of their company was damaged during the crisis mainly due to the fact that they had accepted lots of securities from some banks which turned out to be defective and misrepresented.

“We had filed suits that amounted to more than $10 billion and we ended up with $2 billion. The last big one was settling with the Bank of America Corp (NYSE:BAC) and I personally had several conversations about that along the way with Brian Moynihan and we both wanted to find something we could both live with and put it behind us,” Miller said.

He said that the settlement with Bank of America Corp (NYSE:BAC) made sure that it is fair on both sides and at the end AIG got $615 million out of it. He assured that there will not be any more settlements and lawsuits and the issue is over.

Insurance and Finance companies talk about the importance of ‘systemically important’. Miller said that it means that they have global supervision from Federal reserves, since they have this tag of ‘systemically important’ financial institution. He added that with this tag government and people put their trust on them to make sure that there is no repetition of the financial crisis back in 2008.

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