Murdoch on the Move, Greece Drowning Euro, AIG Shareholders Get Salty in Court Loss

Rupert Murdoch, CEO of 21st Century Fox (FOX), will step down on July 1st

Murdoch will be replaced by his 42 year-old son, James Murdoch, starting July 1st.  Although Rupert is teetering at 84 years old, he'll continue a strategic role as executive co-chairman, sharing the position with his eldest son, Lachlan Murdoch. All of this was expected though, as media reports mention proposals for succession plans to be covered in the next board meeting.

Tension increases over Greek debt talks

Germany has continued to pressure Greece in handling Greece's debt problems, which continue to drag down the Euro.
The latest dispute is over pension issues. For perpective, Greece's pension costs are roughly three times higher than Germany's. Facing a potential default within two weeks, Greek Prime Minister Alexis Tsipras accused his country's creditors of attempting to embarrass and "humiliate" them over their debt problems and drag on the Euro. Tsipras's address gave the impression that he would not be cooperating with creditor's demands, and would not accept the financial cutbacks necessary to avoid default. Austerity looks to be off the table, and default imminent.

AIG (AIG) shareholders salty over Federal Court ruling

Yesterday, Judge Thomas Wheeler of the U.S. Court of Federal Claims, held that the government illegally seized a controlling interest in AIG. The government provided an $85 billion loan in exchange. Wheeler's ruling further included that the terms were harsh and punitive, and officials had no authority to take the 80% stake that it seized. However, Wheeler also ruled that AIG's shares wouldn't be worth the paper they're printed on otherwise, so damages were zero. Shareholders sought $40 billion in losses and to recover the excessively high 12% interest rate charged on the $85 billion loan. Shareholders announced today that they will appeal.

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Published on Jun 16, 2015
By Adam Colgate

Copyrighted 2020. Content published with author's permission.

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