Thursday, July 23, 2009
AIG/Starr Foundation Part 2
We continue to follow the battle between AIG and the Starr International Foundation. The latest news is that a federal jury ruled that a $4 billion endowment owned by the Starr Foundation was not improperly seized from a fund set up to pay bonuses to employees of AIG. That is good news to many charities who received grants from the Foundation. AIG was under the impression that some of those funds could be used to pay bonuses to AIG employees which led to the legal fight. Documents were produced at the trial that show the funds were held in a charitable trust which eventually became the Starr International Foundation. The ruling keeps the money with the Foundation....for now.