Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

American International Group, Inc. (AIG): Should You Fear the Sheriff of Wall Street?

American International Group Inc (AIG)Former political pariah Eliot Spitzer has made headlines recently with his re-emergence into the public-service arena. Spitzer initially gained notoriety as the attorney general of New York, a position that gave him the nickname “The Sheriff of Wall Street.” Now running for state comptroller, a role that includes overseeing the New York’s $139 billion pension funds, Spitzer vows to resume his hard-line stance on public companies. The politician has already proved he isn’t afraid of going after big-name financial institutions, and he has a record of chasing down fraudsters of all shapes and sizes. When it comes to your investments, are you worried about the second coming of The Sheriff of Wall Street?

Before Eliot Spitzer’s fall from grace as New York governor in 2008, he had maintained a strong reputation as a statesman. As attorney general, Spitzer brought the 1921 Martin Act back to life. The Martin Act is a New York piece of legislation that gives power to the attorney general to chase down financial frauds. It’s the only law of its kind among the 50 states.

Using the law and his powers as attorney general, Spitzer hunted down the likes of Hank Greenberg, the former chief of American International Group, Inc. (NYSE:AIG). Alleging that Greenberg misled investors as to the financial health of the world’s largest insurer, Spitzer eventually forced the CEO to resign in 2005. As the world found out just a couple of years later, Spitzer may have been on to something in suing Greenberg for fraud. Even after his time as attorney general and governor, Spitzer continued to lambast Greenberg and American International Group, Inc. (NYSE:AIG)’s actions in writing his 2009 editorial in Slate. In what appears to be an act of vengeance, Greenberg has just now opened a lawsuit against Spitzer (announced one day after Spitzer’s name was added to the ballot) on grounds of defamation.

For American International Group, Inc. (NYSE:AIG) and its investors, the potential return of Spitzer likely isn’t anything to stress over. For one, American International Group, Inc. (NYSE:AIG) has rebounded wonderfully from its financial-crisis lows. The company has a much stronger balance sheet and maintains a more positive view in the eye of both Streets — Wall and Main.

Furthermore, Spitzer as comptroller would not meaningfully threaten public companies or their investors.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.