Spitzer: Corporate Criminal Prosecution for Marsh Not Necessary Following Greenberg Resignation

October 26, 2004

New York Attorney General Eliot Spitzer reacted to the decision at Marsh & McLennan Cos. to have CEO Jeffrey Greenberg step down. Greenberg was under fire to resign as Spitzer investigated reported bid-rigging at Marsh and a number of others in the industry.

“The actions announced today (Oct. 25) by the Board of Directors of Marsh & McLennan Companies permits Marsh and this office to move forward toward a civil resolution of our lawsuit,” Spitzer commented in a release.

“We are persuaded that the goals that would have been advanced by a criminal prosecution of the corporation – punishment, restitution, general deterrence, and industry reform – will be better accomplished by criminal prosecution of individuals, adoption by the company of dramatically new business procedures, installation of new leadership, a full examination of prior wrongdoing and a pledge of restitution to those harmed.

“Realizing these goals, while also allowing Marsh & McLennan to retain a viable role in the marketplace, makes corporate criminal prosecution unnecessary.”

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