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The AIG board has 3 options, says the company in a statement: 1) Take over the Starr (Greenberg)...

  • Tuesday, January 8, 8:00 PM ET
    The AIG board has 3 options, says the company in a statement: 1) Take over the Starr (Greenberg) lawsuit against the U.S. 2) Stand in Greenberg's way (and likely face a lawsuit by him). 3) Allow Greenberg to move forward on AIG's behalf. "The (board) has fiduciary and legal obligations to the company and its shareholders to consider (Greenberg's demand) and respond in a fair, appropriate, and timely manner." (earlier)
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This news story has 12 comments:

  •  
    Arrogance has no limits.
    8 Jan, 08:54 PM Reply Like
  •  
    And who is Starr?

    Well, that would be old Hank Greenberg, the guy who ran AIG into the ground to begin with.

    I have a solution: why don't we send the bill for rescuing the entire financial system to Greenberg. Let him stew on that for a while and see if he thinks that AIG got one hell of a bargain.

    We ought to have let them fail, and taken the rest of the rats down with the ship.

    Instead, we have spent trillions, and still have a zombie financial system, a broke government, huge unemployment, and no economic growth.

    What's that worth Hank? And Sandy? And Jack?
    8 Jan, 09:05 PM Reply Like
  •  
    hell we have people on welfare using the money to go to strip clubs ...
    8 Jan, 10:39 PM Reply Like
  •  
    review all options carefully
    8 Jan, 09:15 PM Reply Like
  •  
    The FRBNY and Treasury were selling exit visas from hell.

    The fact that they anally raped the AIG shareholders as part of the price -- these things don't come cheap.

    No one knows better than Greenberg.
    8 Jan, 09:34 PM Reply Like
  •  
    Greenberg is a douche bag.
    8 Jan, 09:43 PM Reply Like
  •  
    I really like Mr. Greenberg. However, why not let Mr. Greenburg / Starr sue whoever he wants to, and JUST NOT WORRY ABOUT him suing AIG. Because if he does, he will lose. He knows the facts, and so will the jury.
    AIG should NOT sue the US Government who bailed out the company. Let's get real!
    8 Jan, 10:02 PM Reply Like
  •  
    Actually i would argue "sue away." The Government gets a say in this matter. Shall we start with the fact that an overworked and underpaid Federal Judge will have to hear this case? Check. How about the fact that this case is knowingly frivolous? Check. Should we add that the money being asked is purely for the fact that enormous sums have been made by "the others" and for no other reason whatsover? check. And of course there are many other reasons to consider this entire endeavor a total waste of the Government dime. Having said that filing the suit does run the risk of having the Plaintiff demand court costs should they lose. 25 billion sounds about right for court costs to me. "And that would be the Government suing you now." Good luck not paying...
    8 Jan, 10:47 PM Reply Like
  •  
    Just choose C. Some PO'd, fired then foreclosed on, normal guy - who probably had his savings stolen by Corzine and JPM will hunt him down and send him to banker heaven.
    8 Jan, 10:04 PM Reply Like
  •  
    Don't get me wrong as this whole thing smells and looks more than bad. Greenberg should have had a plan to 'exit' AIG gracefully after his near 40 years and it seems he did not have much of a succession plan in place back then. The stories have it he basically ran the place like an emperor. However, the 'accounting' issue he ended up leaving over has no relationship to the insuring of mortgage backed securities through AIG FP. The AIG FP fiasco did not really turn into deadly proportions until well after Hank had left the scene. Several folks have previously said it is not unlikely to think Hank would have caught the craziness going on at AIG FP well before it got to the size it did and total disaster could have perhaps been somewhat averted. Who knows for sure but it is a faact that most of the transactions with AIG FP happened after Hank was gone and Willumstad was 'in charge'. Hank's record over the previous 35 years cannot be disputed as being outstanding no matter how he is perceived now.
    9 Jan, 08:30 AM Reply Like
  •  
    ahouseoforange, agreed. But they just got really really big. Should've stuck to insurance.
    9 Jan, 08:26 PM Reply Like
  •  
    Yeah but other than ILFC which they bought in the early 90s the growth of AIG FP did for the most part not occur until after Mr. Greenberg left the scene. Sure there was AIG FP but nowhere near the size as it got leading up from 2005 to 2008.
    10 Jan, 11:06 AM Reply Like
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