This is a story that you just can’t make up. The former AIG CEO Hank Greenberg is suing AIG for losses incurred when the stock tanked. He is seeking compensation for tax that he paid and for the difference in what he paid for the stock and it’s value.
American International Group Inc, whose $61.66 billion quarterly loss was the largest ever for a U.S. company, has been sued for securities fraud by former Chief Executive Maurice “Hank” Greenberg.
Greenberg, the insurer’s largest individual shareholder, accused AIG of overstating its financial health and masking losses on credit default swaps that hedged default risk for at least $527 billion of debt.
Mr. Greenberg is pretty old I am wondering if he is suffering from some sort of time distortion and does not realize that he was the CEO while all of the tomfoolery was going on. This is just unreal, of course if he wins he will be paid with bail out money.
Editor’s note (Steve): It is important to read the full CNN article, you’ll note that Greenberg was ousted as CEO in March 2005, and the stock that he is suing about was paid to him (deferred compensation) in January 2008.
Greenberg ran AIG for nearly four decades before being ousted in March 2005, when New York Attorney General Eliot Spitzer was investigating transactions involving the insurer.
AIG’s quarterly loss led to a loss of $99.29 billion for the year, largely stemming from writedowns related to credit default swaps, mortgage securities and other toxic debt.
But still, what did he know and when did he know it?