AIG Settles With Ex-CEO: Will Pay Fees, Return Rug
Company agrees to shell out up to $150 million
By John Johnson,  Newser Staff
Posted Nov 25, 2009 5:20 PM CST
Hank Greenberg is sworn in on Capitol Hill prior to testifying before the House Oversight Committee.   (AP Photo/Gerald Herbert, file)
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(Newser) – AIG is done fighting with former CEO Hank Greenberg and will give him his Persian rug back. The taxpayer-owned insurance giant agreed to settle all legal disputes with Greenberg and former CFO Howard I. Smith. The company agreed to pay up to $150 million in legal fees to the two men, with the exact amount to be determined by a third party, reports the Wall Street Journal.

As part of the deal, AIG will return personal effects it kept when it gave Greenberg the boot in 2005 amid an accounting scandal, including a Persian rug and photographs of him mugging with Chinese leaders. Also, he can use the company archives to write his memoirs, and both parties must play nice in public. Greenberg remains one of AIG's largest shareholders, and he looked forward "to assisting AIG in trying to preserve and restore as much value as possible for all of AIG's stakeholders.”