AIG Snubs Morgan Stanley And Picks Goldman, JP Morgan, BofA And Deutsche To Underwrite Stock Sale

james gormanMorgan Stanley’s CEO James Gorman.

AIG and the Treasury have picked four banks to lead the first of two possible stock sales of the government’s massive holdings in the insurance giant along with newly issued stock, according to Dealbook.BofA, JPMorgan, Goldman Sachs and Deutsche Bank all secured roles as underwriters in a sale that could beat GM’s massive IPO last year.

Meanwhile, Morgan Stanley, which was a lead underwriter for the GM offering and also advised the Fed on AIG during the crisis, was snubbed.

The bank’s CEO James Gorman even pitched AIG personally, whereas Goldman CEO Lloyd Blankfein didn’t even bother to turn up last Thursday – he sent deputy Gary Cohn instead.

After hearing 10 proposals from senior executives like BofA’s Brian Moynihan and JP Morgan chief Jamie Dimon, from all the major banks, officials then selected the underwriters over the weekend.

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