Greenberg: AIGers "Got Greedy"

By Zachary Roth - April 2, 2009, 10:35AM

Greenberg:

You don't have control, and you don't have management oversight, things can go wrong. And they did.
...

I think they got greedy. I think they wrote considerably more business than they should have.

Hard to argue with that. But it only happened after Greenberg left, of course.

Also: this is coming from the man whose net worth was rated by Forbes at $3.6 billion in 2004.

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He says AIG had control of Cassano, but here he seems to say the opposite.

Another problem: I've read that AIG stopped writing CDS in about 2005. That's when Greenberg left. Helluva coincidence, and it means the CDS stuff was done while Greenberg was there. Now, AIG also did a lot of CDO business, and I don't know how that went before or after 2005.

That said, I think the Congressional panel is being abusive to Greenberg.

Posted by eds
April 2, 2009 4:06 PM | Reply | Permalink

At least we now know where $3.6 Billion of AIG's losses ended up.

Posted by Johann
April 3, 2009 9:57 AM | Reply | Permalink