AIG Comes Out Swinging in $4.3B Lawsuit vs. Ex-CEO

(NEWSER) - The SEC today simultaneously announced a complaint against former AIG chief Hank Greenberg and the resolution of the matter—a $15 million payment to settle the suit, the New York Times reports. Greenberg and a former AIG CFO were accused of “numerous improper accounting transactions” between 2000 and 2005 that artificially inflated the firm’s value. Greenberg was ousted from AIG in 2005 for similar trespasses. More»

Government should focus on reducing stake, restructuring firm, former CEO says

(NEWSER) - AIG’s former CEO told Congress today the bailout of the insurance firm has “failed” and that the government should restructure the company, the Wall Street Journal reports. At a House committee hearing, Hank Greenberg said he blamed his successors for the firm’s implosion: "I think they got greedy. I think they wrote considerably more business than they should have." More»

Greenberg files letter with SEC asking for less 'onerous' deal

(NEWSER) - With the Fed now injecting capital directly into Wall Street's spiraling banks, AIG's former chairman worries the company got shafted, the Wall Street Journal reports. The insurer will go under if the government doesn't change its bailout terms from a two-year, high-interest loan to 10-year nonvoting preferred stock, Hank Greenberg says, adding that more recent bailouts come with "terms far less onerous.” More»

They say takeover violated investors' fifth amendment rights

(NEWSER) - Former AIG CEO Hank Greenberg is suing the US government for $25 million for having the effrontery to bail out the dying insurer. Greenberg was ousted in 2005 after allegedly cooking AIG’s books to inflate its value, but still had a keen interest in the company during the bailout, because his firm, Starr International Co., was its largest shareholder. Now Greenberg’s saying that the bailout of the firm violated shareholders’ constitutional rights, the Wall Street Journal reports. More»

Company agrees to shell out up to $150 million

(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 . More»