AIG on Thursday said it would use $4.3bn it is seeking from former chief executive Hank Greenberg’s firm to repay the US government rather than compensate its executives, in an attempt to defuse one of its opponent’s main arguments ahead of Monday’s trial. The surprise statement by the insurer, 80%-owned by the government, comes as a long battle over ownership of a large stake in AIG culminates in legal proceedings in which Greenberg is likely to be the star witness.

This entry was posted by Gwen Robinson on Friday, June 12th, 2009 at 4:53 and is filed under Capital markets, People. Tagged with aig. Edit this entry.