Weill And Zarb Part Company
Sandy Weill has lost a top lieutenant: Frank Zarb, vice-chairman of Weill's Travelers, said on June 7 that he would become chairman of insurance broker Alexander & Alexander Services. Zarb, who says Weill "is still my best friend," wants results fast. That won't be easy: A&A is struggling. It lost $4.4 million in the first quarter. It's out of compliance with a long-term credit line and faces steep litigation costs and high overhead. The good news: It won a $200 million cash infusion from American International Group, which bought 21% of A&A's nonvoting stock.