Greenberg: AIG bailout has failed

Reply Thu 2 Apr, 2009 08:05 am


Former AIG CEO Maurice “Hank” Greenberg says the bailout has "failed" and he's proposing a 10-point alternative focused on saving, not breaking apart, the mega-insurer.

Greenberg will reveal his plan during a hearing before the House Oversight and Government Reform Committee today, slated to start at 10 a.m.

His proposal includes pressuring the counterparties at the other end of AIG’s toxic financial transactions to reinvest in AIG some of the $100 billion in taxpayer money they received as part of the firm’s bailout, according to a copy of Greenberg’s prepared testimony obtained by POLITICO.

Critics have blasted the feds for not forcing AIG counterparties to take a loss on the complex financial contracts, but rather allowed them to be paid off in full. Particularly galling for some is the fact AIG paid out billions of U.S. taxpayer money to Europe’s largest banks.

“The plan has also been highly controversial and in some respects downright puzzling,” Greenberg says of the counterparty payments.

But Greenberg’s mere appearance before the committee is controversial, too.

He was forced out of AIG in 2005 in the wake of an accounting scandal. The house oversight panel’s top Republican, Rep. Darrell E. Issa of California, Wednesday asked Chairman Edolphus Towns (D-N.Y.) to reconsider allowing Greenberg to testify, raising concerns about the witness’ credibility given he’s at the center of several lawsuits, including charges securities fraud charges by a U.S. Attorney.

(Excerpt) Read more at politico.com ...
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Reply Thu 2 Apr, 2009 08:09 am
Sour grapes. He's just mad because Liddy does his job better than he did.

Reply Thu 2 Apr, 2009 08:41 am
Greenberg basically made AIG. He didn't get heaved for anything he did at AIG, he got heaved in some sort of a Spitzer witch hunt before Spitzer got heaved for being a pervert.
Reply Thu 2 Apr, 2009 09:46 am
Spitzer got caught with his pants down, figuratively. That doesn't make him a pervert, though. The constipated Protestant prudes who make sexual behavior an issue in politics are the real perverts.
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Reply Thu 2 Apr, 2009 10:13 am
Actually Greenberg was connected with the Starr Foundation which included compensation for top executives. True that he resigned but it was because the public was outraged at the way things were handled and it was creating problems within the business.
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Reply Wed 8 Apr, 2009 12:13 am
Greenberg had a shell company in the Cayman Islands thru which profits from AIG were hidden and executives were given huge bonuses and made Greenberg a billionaire.
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