The US said he was busy “managing the nation’s economy”.
Well, tough. Read more
In Wednesday’s Wall Street Journal, the AIG godfather inquires “why did we nationalise AIG?” Read more
Having been CEO of AIG since the 1960s, only to resign in 2005 amidst a major accounting scandal, you could perhaps forgive him if he doesn’t.
AIG and Hank Greenberg have agreed to settle all the remaining lawsuits between them. The US insurer, rescued last year with more than $180bn of government money, will reimburse legal fees of up to $150m for Greenberg and Howard Smith, AIG’s former CFO, subject to a review by an independent third party. The settlement also covers CV Starr, an insurer headed by Greenberg that underwrote some of AIG’s business, and Starr International Company, his private investment group.
On Monday, the New York Times declared Maurice “Hank” Greenberg to be “at it again”, by which they meant executing a talent raid on the company he once steered:
Even as he has been lambasting the government for its handling of A.I.G. after its near collapse, Mr. Greenberg has been quietly building up a family of insurance companies that could compete with A.I.G. To fill the ranks of his venture, C.V. Starr & Company, he has been hiring some people he once employed.
FT Alphaville presents a selection of visionary — and not so visionary — quotes from the Lehman crisis.
To start, Dick Fuld, CEO of Lehman, on October 6, 2008: Read more
Hank Greenberg, former chairman of US insurer AIG, on Thursday agreed to pay $15m to settle the SEC’s investigation into his role in accounting fraud at the troubled insurer from 2000 to 2005. The settlement focuses on Greenberg’s alleged involvement in “numerous improper accounting transactions” that inflated AIG’s results. The SEC said these included sham transactions with General Re, the reinsurance company, use of an offshore entity to conceal auto insurance losses and shifting money around to report investment gains.
Speaking of a busy week for the SEC (emphasis FT Alphaville’s):
Washington, D.C., Aug. 6, 2009 – The Securities and Exchange Commission today charged former American International Group Chairman and CEO Maurice “Hank” Greenberg and former Vice Chairman and CFO Howard Smith for their involvement in numerous improper accounting transactions that inflated AIG’s reported financial results between 2000 and 2005. The SEC alleges that Greenberg and Smith are liable as control persons for AIG’s violations of the antifraud and other provisions of the securities laws. Smith also is charged with direct violations of the antifraud and other provisions of the securities laws.
Hank Greenberg, the former chief executive of insurer AIG, prevailed in a high-profile legal battle with his former company after a federal jury ruled in his favour over claims related to a $4.3bn lawsuit, the FT said. The jury ruled that Mr Greenberg’s private investment firm, Starr International Company, did not breach a trust when it terminated a long-term compensation plan at the insurer four years ago and was not liable for about $4.3bn worth of shares held for that programme. The jury’s verdict is advisory and can still be overturned by the presiding judge.
Hank Greenberg, AIG’s ex-chief executive who was ousted in 2005, told a US federal court on Wednesday he had been “angry” and “unhappy” about his ouster from the stricken insurer, as AIG’s attorney sought to draw links between Greenberg’s exit and termination of AIG’s $4.3bn retirement plan, controlled by Starr, his private investment firm. Greenberg admitted he was ‘exaggerating’ when he had assured participants in 2000 that the plan would have “sufficient shares in the trust for a couple hundred years”.
Hank Greenberg, who was ousted as AIG’s chief executive in 2005, defended the decision to terminate a long-term compensation plan involving a block of the insurer’s shares now at the centre of a $4.3bn lawsuit. Greenberg, 84, told a US court that the voting shareholders of his private investment firm, Starr International Company – once AIG’s largest shareholder– had lost confidence in AIG after he was forced to leave. He was testifying at a trial over the disputed shares belonging to Starr.
A judge in an AIG civil trial involving Hank Greenberg, the insurer’s former CEO, imposed strict curbs on the scope of the federal court hearing on Monday. The public bail-out of AIG and the furore over its controversial bonuses cannot be discussed in a trial over a $4.3bn lawsuit involving Greenberg; neither can investigations into accounting practices that led to the departure of Greenberg from AIG in 2005, said judge Jed Rakoff.
Hank Greenberg, the former chief executive of AIG, has accused the US government of bungling the insurer’s rescue by imposing a high-interest loan and forcing the repayment of $30bn-plus to banks and partners. In an interview with the FT, Mr Greenberg, who led AIG for 38 years before being ousted in 2005 during a probe of its accounting practices, suggested the US authorities’ actions made the company’s break-up inevitable. “You’re not going to see an AIG – AIG will be gone, it will be broken up into many pieces,” he said.
Extreme times make for unusual situations. Such was the spectacle of seeing one of the biggest, but most low-profile, buyout kings pop up at a panel discussion held Thursday at Manhattan’s Pershing Square restaurant. Not only that, Christopher Flowers, along with Hank Greenberg and Peter Peterson, turned up to be grilled by Vanity Fair columnist Michael Wolff, author of the recent biography of Rupert Murdoch, in an event called “The Big Fix”.
Rather than focusing on any “fixes”, however, the tone of the discussion seemed to be more about “who to blame” for the financial mess. Not surprisingly, the answer from the three men was: “anyone but us”. First in the firing line were the credit rating agencies, who the three slammed for giving top grade ratings to so many companies. In Flowers’ view, their “mis-ratings” led to “extraordinary damage” to the financial system. Read more
Maurice “Hank” Greenberg’s CV Starr said Monday it had formed a joint venture with a Bermuda insurer that is ramping up its business after recruiting some of AIG’s top talent, reports Reuters. The venture will reunite Greenberg, who ran AIG for 38 years, with executives who once worked under him. CV Starr, an investment and insurance company run by Greenberg, and Ironshore Inc formed Iron-Starr Excess Agency, the companies said. The venture will be based in Bermuda and offer excess financial and commercial lines insurance and reinsurance products through insurers based in the US, Bermuda and elsewhere.
Hank Greenberg, former chief executive of AIG, is soon to release a plan outlining an alternative way to save the stricken insurer that was rescued by the US government last month. Greenberg, who built AIG over four decades before being ousted in 2005, was expected to file his proposal with US securities regulators as early as Monday night. The plan is also expected to be presented to Treasury secretary Hank Paulson and key members of Congress. The details were unclear but the plan could involve modifications to the deal with the government, which extended an $85bn loan to the giant insurer last month. The Fed extended a two-year loan to AIG at an interest rate of 850bp over three-month Libor. In return, the government gained the right to purchase 80% of the insurer’s stock. The company recently announced a programme of asset sales that, if successful, would reduce the company’s revenues by more than half. However, the insurer’s troubles have continued and last week, the Fed agreed to provide up to $37.8bn in additional liquidity, on top of the $85bn rescue loan, to help AIG fund its troubled securities lending operations.
So Hank Greenberg took the money, flogging off a good chunk of his AIG shares, along with another former AIG executive Edward Matthew, who sold off all his shares.
Bloomberg reports Friday that Greenberg sold 40m AIG shares for about $129m after the stock tumbled more than 90 per cent this year – just for “liquidity and other purposes”, according to regulatory filings. Read more
Maurice “Hank” Greenberg, the former chief executive officer of AIG sold off 40m shares of the stricken US insurer for about $126m after the stock tumbled more than 90% this year, reports Bloomberg. Starr International, a firm run by Greenberg, sold 35m AIG shares at $3.06 each, while Greenberg, 83, sold 5m shares for about $3.77 apiece. He still controls more than 10% of the company. Greenberg is selling shares “for liquidity,” according to another regulatory filing. Greenberg and companies he runs owned about 11% of AIG, the largest block, before Thursday’s sales. AIG averted collapse last week by agreeing to a federal takeover. Greenberg was among investors who met Sept 22 to discuss raising money to reduce federal involvement in a rescue. AIG said the next day it signed a deal for an $85bn Fed credit line, reducing the options left for dissident shareholders. AIG dropped nearly 9% to $3.02 in NY late afternoon trading after rising as much as 32%, as investors took Greenberg’s move as a sign that perhaps they, too, should sell.
UPDATE at midnight: CNBC is reporting that the Fed is considering an $85-90bn bridge loan to AIG; shareholders would be “severely diluted but not wiped out”, while the Fed would receive warrants for most of the equity. The loan would allow AIG to sell assets in a more orderly manner to raise capital and slow rebuild.
(H/T: Stock twitter-ers in decent time zones) Read more
Hank Greenberg, the former chief executive of American International Group, faces possible civil charges from US regulators in connection with a scheme that flattered the company’s financial statements. Greenberg, who left in 2005 when AIG was hit by an accounting scandal, received a Wells notice from the SEC in relation to his alleged role in reinsurance transactions between AIG and General Re, a subsidiary of Berkshire Hathaway, his lawyer confirmed. The notice, which informed him of proposed charges, offered his lawyers an opportunity to present arguments against them. Most, but not all, Wells notices are followed by civil charges.
Hank Greenberg, former chief executive of American International Group, has stepped up his campaign against current management, claiming the insurer is “in crisis” and urging the board to postpone tomorrow’s shareholder meeting. In a letter to the board, Greenberg, who left AIG in 2005 when it was being investigated for accounting irregularities, said its deepening financial troubles had “led to a complete loss of credibility with the investment community”. Last week, AIG slumped to a record quarterly loss and announced a $12.5bn capital raising after suffering $15bn in credit-related writedowns. Its shares have lost more than 47% in the past year.
Shares in American International Group rose almost 2 per cent after former chairman and chief executive Maurice “Hank” Greenberg revealed he could push for changes to the management and structure of the world’s biggest insurer. The shares rallied after Mr Greenberg, who was ousted from the company in 2005, said in a filing he was examining “strategic alternatives” for the insurer. The 82-year-old indicated he could hold discussions with AIG shareholders and third parties on “the suggested disposition of certain of its operations, investment opportunities and concerns over the direction and management” of AIG.
Hank Greenberg is back in business in China, launching a small private-equity fund aimed at the nation’s IPO issuance, reports the Wall Street Journal. The former chairman of AIG will be pursuing deals through a JV he has set up with Citic Securities. Starr International, Mr Greenberg’s investment vehicle, and Citic will narrow their scope to buying stakes in Chinese companies planning an IPO. Citic said each party will invest as much as 500m yuan, or about $64 million, in the 50-50 joint venture