AIG Ex-CEO Greenberg, Congress Spar Over Company Mess

By | April 2, 2009

  • April 2, 2009 at 7:16 am
    Alabama Agent says:
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    Fla agent.get your facts straight. pete is correct. it started with jimmy carter, and manifested itself with the clintons. pressure on freddie & fannie (senator dodd & rep franks)to name a couple of the culprits to lower requirements to get home loans to undeserving people.anytime you lower your standards failure is emminent. you just don’t know when.

  • April 2, 2009 at 10:18 am
    Smart Girl says:
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    Idiots all of you.
    New Century & sub prime mortgage lenders got their roots in the Bush Administration. What do you people read in the middle of the country ? What garbage media are you watching?

    The AIG mess is a SMOKE SCREEN to hide the conflict with GOLDMAN the Foreign Banks and Bernake.

    I pray the world will wake up and finally realize the truth.

  • April 2, 2009 at 10:22 am
    Smart Girl says:
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    Did you ever work for Mr Greenberg? Do you even know what it is like to work for a man like him?
    NO, I didn’t think so.

    Listen up. Greenberg kept the financial guys on a TIGHT and Short rope. The met with him every Tuesday and if he didnt like anything he made them stop immedately.

    Have you ever been the subject of one of Mr Greenberg’s inquaries? NO< I dont think so. If you did then you would know he would NOT tolerate anyone putting the company's interests in jepordy. know your subject matter

  • April 2, 2009 at 1:14 am
    Muffy Greenberg says:
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    No the corrupt thief will not admit a thing.
    Why should he…like everyone else…he can say some one else F’D up the company and the rest of the country.
    No one ever takes any resposibility any more. This does show how low we have fallen as a country…
    I can only pray some one starts to dig us out this mess and the villians can explain there evil ways in a few years when they meet there maker…

    That I would like to see…
    There lies will not work on there next journey…

  • April 2, 2009 at 1:18 am
    LOL says:
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    LOL score one for poor editing – appears a new phrase was just coined. Nicely played.

  • April 2, 2009 at 1:19 am
    Frustrated Citizen says:
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    That Mr. Greenberg can TESTIFY that he knows of no losses arising out of CDSs sold during his tenure demonstrates either an inability to comprehend reality or a cavalier disregard for the concept of accepting responsibility. Mr. Greenberg was an active participant in building this house-of-cards. AIGFP stopped selling mortgage-related CDSs in 2005 once Mr. Greenberg departed the company.

  • April 2, 2009 at 1:23 am
    Jen says:
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    “The fragile-looking, 83-year-old Greenberg”

    Apparently congress is not familiar with Maurice…..

  • April 2, 2009 at 1:31 am
    Bean Counter says:
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    I hope that congress actually has the guts to really turn up the heat on Greenberg. It was his concept that created the entire mess at AIG.

    Claiming that when he left there was nothing wrong is laughable. He created a deadly situation and want no part of the blame.

    I hope that he gets his just deserts.

  • April 2, 2009 at 1:39 am
    Mario says:
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    Hank Greenberg created this mess, and the taxpayers are left holding the bag. Hank has stated many times that he was a hands on type of CEO. Hank Greenberg and all of the Executives who created this mess should spend the rest of their natural lives in prison.

    Take Care

  • April 2, 2009 at 2:33 am
    Anon says:
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    No different than the person that bought a mansion and can’t afford the payments. Watching them on TV, none of them were to blame either.

  • April 2, 2009 at 3:17 am
    Mark says:
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    The fact that a company he ran for 40 years could disintegrate so soon after he left is astounding. The fact that he could say with a straight face that he had no hand in the down fall is insulting. He should have left a deep and wide management bench. He should have left a culture that rewarded long-term decision making. He should have left a company that was a gift to the next generation. Instead we get this. It is really just sad.

  • April 2, 2009 at 3:30 am
    Bean Flicker says:
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    Everyone is missing the point. Congress is wasting time pointing the finger at yet another person. Don’t get me wrong…i don’t believe for 1 minute that Old Hank had no part in this. HOWEVER, I believe congress should focus their efforts on HOW TO FIX THE PROBLEM. Fry these ba$tards later but for now FIX THE G’DAMN PROBLEM.

    Every other week, Obama/congress are pointing the blame in a new direction. TAKE RESPONSIBILITY FOR YOUR ACTIONS AND CORRECT THE PROBLEM! That should be priority number 1.

    If hank came out today and said “it was all my fault”, then what are they going to do? Do you really think that’s going to magically make the issue resolve itself? Who did it is not nearly as important as how do we fix the mess. Unforunately congress is full of half wits and fail to see this

  • April 2, 2009 at 3:32 am
    Rick says:
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    Franklin Raines when CEO of FannieMae testified that “these mortgages are riskless”. Why does this go unreported? The government sponsored entity FannieMae was the prime mover of this credit crises, not AIG. AIG and the Banks were reacting to the mortgage market created by Fannie.

  • April 2, 2009 at 3:34 am
    pita says:
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    Bean….you are wrong in your statement “congress is wasting…time”

    In this day and age where some of us view activity as getting something done…this activity does get some of us nitwit voters to believe that they (congress) is actually making forward progress.

    Unfortunately…what they are doing is moving in circles and avoiding the real issues…imagine that!

  • April 2, 2009 at 3:38 am
    Black Hat says:
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    Not that I’m a big fan of Hank’s style, but chastizing him for not “leaving” with more bench strength in-place is off the mark.
    He was forced out. They guy who pushed isn’t up for any humanitarian awards.
    Whatever bench strength he had would have shared his philosophy.
    As an investor I would expect this of any CEO. Can you image any CEO saying “don’t worry, if I die there’s plenty of guys lined up who’ll radically change this leopards spots”.
    Many of those to blame were greedy and/or failed in their due dilligence, others committed fraud. Those that crossed the line need to be sent to jail (not tennis camp).

  • April 2, 2009 at 4:03 am
    michael says:
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    He ran AIG for many years, purchasing reinsurance from other companies. Those other companies are still feeling the pain of the losses they have endured and are enduring as a result; it is understood that any grounds for denying or nullifying the coverages provided by those reinsurers are so technical as to make the reinsurers hesitate.

  • April 2, 2009 at 4:07 am
    Eagle says:
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    The depth of the management bench isn’t the issue. The issue is that Hank Greenberg, like so many CEO’s in the last 20 years, takes no responsibility for their avarice and arrogance. Greenberg knew, perhaps better then anyone, that the credit risk on this portion of his business was far beyond any reserves set aside for its demise. In our industry to play that kind of odd without covering your downside is pure greed and arrogance. And for him to say that they hadn’t had one loss when he left is precisely what I reference. His convincing himself that it wouldn’t ever have a loss is incredibly narcisstic. We had better figure out how to grow CEO’s that aren’t so consumed by their power that they lose sight of their true jobs. Hank forgot what that was about.

  • April 2, 2009 at 4:11 am
    James says:
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    You are all falling for the AIG smoke screen – the real culprits can be found at Goldman Sacks and the like. Dig a little deeper in that direction and you will be shocked

  • April 2, 2009 at 4:25 am
    PETE says:
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    CONGRESS – Congress caused this mess by REPEALING GLASS STEAGAL! We elect them to regulate as well you know. In 1933 they (congress) did the right thing AND IT WORKED. Then, congressmen lined their pockets, were bought off and repealed it! Congress created this problem and what they’re NOW doing is a smoke screen.
    Congress – responsible for FANNIE, FREDDIE, Glass-Steagal repeal…..
    WAKE UP!!!!!!!!!!!!!!!!!!!!!!!!!

  • April 3, 2009 at 4:41 am
    paul decotis says:
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    It may appear like an archaic, but maybe the banks should go back to just doing banking business and the insurance companies just writing insurance. This crisis started as a result of the banks being permitted to get into the insurance business and the insurance companies allowed to get into the banking business.

  • April 2, 2009 at 5:48 am
    Fla. Agent says:
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    You hit the nail on the head!

    The Republican Congress is to blame for repealing many of the safeguards put in place after the last depression. Somebody please ask Newt Gingrich what happened to the Contract with America.

  • April 3, 2009 at 5:59 am
    Jane Logan says:
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    The SEC investigated AIG and Hank Greedberg (Grinch who stole the economy)2004 through 2006 how did they miss the Credit Default Swaps?! Where was AM Best while all this was going on? Hank Greedberg is guilty as charged and the SEC is incompetent, corrupt or most likely both.

  • April 3, 2009 at 7:26 am
    Publius says:
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    “Smart Girl”–absolutely right on the money with the Greenberg persona. He ruled that company and everyone in it like an emporer…if he is guilty of anything, it is not molding effective leadership to take over after he left. The same fate would have befallen AIG as did the Aetna when it went down because it had terribly weak leadership after MRG was pushed out.

    ‘Though it seems that we all miss one of the vital elements of AIG’s “collapse”: that its demize was brought about, not by faulty business practices, but by an overzealous Attorney General seeking to increase his fame by defaming AIG and Greenberg in the media and threatening its over 90,000 employees with an Enron-like collapse if he didn’t retire.

    Hank has since been vindicated in criminal and civil courts of all those suits against him. The first strike was political and now we see the death moan of a once great company being drawn out for political reasons.

    This whole country makes me sick. Make no mistake, Greenberg is probably the last great American business man along the lines of Morgan, Rockefeller, Carnegie, etc.–except that he did it all himself. In the next few years, we will see the death of American Capitalism at the hands of BOTH parties. Capitalism didn’t fail, Government hands in capitalism failed the American people.

  • April 3, 2009 at 7:45 am
    AIGer says:
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    And yet, despite his weekly meetings, the imperious Mr. Greenberg completely and utterly missed and/or ignored the CDS timebomb(as did everyone else) that he allowed to grow larger and larger through his tenure.

    No, I think Mr. Greenberg needs to claim his seat next to another brilliant man who turned out not to have a clue: Mr. Greenspan.

  • April 3, 2009 at 8:00 am
    Frustrated Citizen says:
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    Bingo!

  • April 3, 2009 at 8:05 am
    Frustrated Citizen says:
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    Hank, is that you pretending to be a “smart girl”?

    This rant is Greenbergian . . . one of Hank’s core tenets is that “everyone but me is an idiot.”

  • April 3, 2009 at 8:22 am
    ringo says:
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    and called Ferguson to ask for the reinsurance deal, Greenberg set the wheels in motion for all of this to happen. No escaping that fact.

  • April 3, 2009 at 9:53 am
    Suzi says:
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    Publius- Last of the GREAT Businessmen??? You must be mad.

  • April 3, 2009 at 11:16 am
    MD Musketeer says:
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    Go to http://www.group30.org and you’ll see a secret society that recognized and published papers about the risk of derivatives due to lack of regulation.

    They predicted the firsk to the world financial system in 1993.

    They are 30 people including Geithner, Volcker, Summers, Goldam Sachs, Morgan Stanley, AIG and a number of foreign banks.

    They are officially the Group of 30 and they are real.

    And they are a violation of anti-trust law that should be investigated.

  • April 3, 2009 at 12:15 pm
    SMART GIRL says:
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    No the crisis didnt start because of that.
    The crisi started because of start up lenders like new century who lent money to sub standard barrowers.

    Bank selling insurance and Insurance companies extending into investment companies has nothing to do with the orignation of the broblems

  • April 3, 2009 at 12:17 pm
    SMART GIRL says:
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    Credit Default Swaps were nort illegal.
    There was no reason to investigate anything like that.

    LEARN YOUR FACTS

  • April 3, 2009 at 12:19 pm
    SMART GIRL says:
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    Thank you

    Finally someone with a brain is posting

  • April 3, 2009 at 12:20 pm
    SMART GIRL says:
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    Ithe book grew under SULLIVAN not Greenberg.

    SULLIVAN stopped the weekly meetings

  • April 3, 2009 at 12:27 pm
    SMART GIRL says:
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    lORD HAVE MERCY

    This is not a “secret scoiety”

    please stop panicing the public and responsibly post

  • April 3, 2009 at 12:31 pm
    SMART GIRL says:
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    Thi is not a rant
    This is a response to a post

    read before you write

    I am frustrated too, with what has happened to my 401k and with the irresponsible reporting and press.

  • April 3, 2009 at 12:38 pm
    pita says:
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    Love the comments about 401K impacts. We all know that each recession is followed by the resurgence of the market.

    So once the market returns our 401’s will return to health. Truth is that unless your principal is gone…your 401’s value was only on paper. It is not converted to real money/value until it is made into cash for us to pay our expenses in retirement.

    The only question is … how long till the recovery. Based on recent reports the early signs are here…just a matter of being patient as these are “normal” cycles.

    Those who are retiring in the next few years are the ones truly impacted…and even those should have already pushed their 401’s into more stable methods (bonds etc).

  • April 3, 2009 at 1:07 am
    MD Musketeer says:
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    Just go to their web site Smart Girl.

    Is it a secret that they exist – no. It’s in Geithner’s Wikipedia biography. Do they meet privately with no outsiders – yes, as shown on their own web site.

    The members are the biggest participants in the CDS game, a game that according to their own publications that “could cause the failure of individual firms and a major financial crisis.”

    Wonder what they talked about over cocktails – the weather?

    While poor Hank is now a pitiful sight, I for one am far more interested in the Group of 30’s explanation about why their members pursued a business -with great vigor- that they had labeled dangerous to the world financial system. And why they think the US taxpayer should bail them all out after they skimmed billions in compensation – all on what are now known to be illusory profits.

    And they did meet “secretly”.

  • April 3, 2009 at 1:17 am
    Publius says:
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    Good luck Musketeer, it sounds like you’re on to something there. While you’re at it, why don’t you go after Skull & Bones, the Masons and Opus Dei. Somtimes the right answer is the simplest: The culpability for CDS’s and the resulting liquidity crisis that resulting from the downgrades at MULTIPLE companies lies with the originators of the CDS, as well as the counter-parties on the risk (Goldman, Morgan, UBS, etc.). AIG is the subject of a political witch hunt.

    I have an idea, why don’t we just unionize white collar workers! Workers of the Financial Sector Unite! Make $60,000 a year with benefits for life! No more unnecessarily risky transactions to jeopardize your future! Welcome to the farm, the Pigs are in control!

  • April 3, 2009 at 1:26 am
    Jen says:
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    The girl scouts also meet privately with no outsiders….not sure the point you are trying to make

    If they are trying to hide and be secretive someone should tell them having a website, published financial report and newsletter may not be in their best interest

  • April 4, 2009 at 12:56 pm
    James says:
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    Nobody really pays attention to the news so here are Two GOLDMAN SAKS links to look through:

    http://finance.yahoo.com/tech-ticker/article/208786/AIG-Bombshells-1.2B-in-Bonuses-Over-100B-Paid-to-Goldman-Other-Banks?tickers=AIG,GS,C,BAC,DB,BCS,XLF
    and http://www.freerepublic.com/focus/bloggers/2211336/posts#1

    “THE US HAS BEEN FINANCIALLY RAPED AND THE STORY IN THE NEWS IS ABOUT THE RED, WHITE & BLUE DRESS THAT WAS WORN”

  • April 5, 2009 at 10:09 am
    CEO of American says:
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    the insurance giants’s near collapse, ….RE: Smoke …who is the Screen-insurance .give this money to the state,s not CEO of insurance.



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