Maurice R. Greenberg
|Maurice R. Greenberg|
|Occupation||Chairman and CEO|
|Employer||C.V. Starr and Co.|
Maurice R. "Hank" Greenberg is the chairman and CEO of C.V. Starr and Co. He is also the founder and former CEO of American International Group (AIG). He spent more than 35 years building AIG from an obscure, second-rate insurer to one of the largest companies in the world. He was forced to resign in 2005 as part of a settlement with then-New York State Attorney General Eliot Spitzer over alleged accounting improprieties, but remained one of the firm’s largest shareholders. The following year, AIG paid $1.64 billion to settle federal and state investigations into its business practices.
The U.S. government rescued AIG in September 2008 to keep it from going bankrupt after the company ran up billions of dollars in losses from writing insurance on bad mortgage securities.
In early March of 2009, Greenberg launched two separate salvos against his former company, accusing it of cheating him out of a fortune and blasting current CEO Ed Liddy for trying to lay some of the blame for AIG's woes at Greenberg's feet. Greenberg sued AIG in Manhattan federal court, claiming execs at the insurer kept shares "artificially inflated" by lying about the company's exposure to subprime mortgages. He claimed those "material omissions and misrepresentations" killed the value of 3.7 million shares of AIG stock he got under a deferred-compensation package in January 2008. The lawsuit didn't specify damages, but demanded the $70 million in taxes he paid on the $200 million in stock.
In 2014 Greenberg sued the U.S. government, claiming that the 2008 federal bailout of AIG was unnecessarily punitive toward AIG’s shareholders and that, rather than saving the company, it cost shareholders tens of billions of dollars. In June of 2015 a judge ruled that the government violated the law in taking a controlling stake in AIG in 2008, but did not award any damages to Greenberg or the thousands of shareholders who joined his action, accepting the government's argument that without the $85 billion loan, AIG would have filed for bankruptcy and left shareholders with nothing.
In June of 2016 New York's highest court ruled that Greenberg must stand trial over alleged fraudulent transactions.
- TNR Exclusive: An Interview with Former AIG CEO Hank Greenberg. The New Republic.
- The A.I.G. Trial Is A Comedy. The New Yorker.
- Greenberg Says AIG Ripped Him Off With Hyped Shares. New York Post.
- Greenberg’s Folly. Slate.
- Former AIG Chief Hank Greenberg Wins Moral Victory in Bailout Trial. The Wall Street Journal.
- Former AIG chief Greenberg must face New York fraud trial. Reuters.