AIG’s Liddy Says Greenberg Responsible for Losses

[Octafish]

Source: Bloomberg

AIG’s Liddy Says Greenberg Responsible for Losses

By Erik Holm and Margaret Popper

March 2 (Bloomberg) -- American International Group Inc. Chief Executive Officer Edward Liddy said ex-CEO Maurice “Hank” Greenberg, credited with building the company into the largest insurer, was partially to blame for the firm’s woes.

“I think he’s responsible” for some of the insurer’s struggles, Liddy said today in the interview. “The formation of the AIGFP unit, which has literally brought us to our knees, that happened on his watch. The compensation systems that have gone astray, happened on his watch. I don’t think it’s as clean and simple as sometimes Hank would like to portray.”

Greenberg was at the helm during the formation of AIG’s financial products unit, which sold derivatives that cost the company more than $30 billion in writedowns and prompted a government rescue, Liddy, 63, said today on Bloomberg Television. New York-based AIG today reported the biggest loss by a publicly traded U.S. firm and announced that it reached an agreement to restructure its federal bailout.

Greenberg, who led AIG for almost 40 years before being forced to retire in 2005, has said Liddy is not equipped to run the company and called the sale of the firm’s insurance units to repay the government a “tragedy.” Greenberg told Congress last year that risk controls he put in place were weakened or eliminated after he left.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aHDoc7YcjQZI&refer=home

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Greenberg is BFEE. Big Time.

[acmavm]

1. Well, let's just hope that he's the first of many to fall.

[Octafish]

7. AIG meltdown has roots in Greenberg era

Nothing like piling on...

AIG meltdown has roots in Greenberg era

Tue Mar 3, 2009 10:58am GMT
By Lilla Zuill

NEW YORK (Reuters) - Maurice "Hank" Greenberg's legacy as the man who built AIG into the world's largest insurer was tarnished by a 2005 probe but questions about whether he created a financial monster that subsequently ran amok could cause greater damage to his image.

The former Army captain -- who left AIG in 2005 amid allegations he used off-balance sheet transactions to improperly boost profits -- had previously been revered for his track record of steady profit growth over a 38-year tenure.

In the years since he quit AIG, Greenberg has pursued other business interests, but much of his time has been spent defending his name and railing against a succession of CEOs who replaced him at AIG.

But AIG's posting on Monday of a $61.7 billion (43.9 billion pounds) quarterly loss, the biggest in corporate history, and the announcement of a third bailout by the U.S. government have prompted his critics to ask whether Greenberg planted the seeds of the financial disaster that already threatens to cost taxpayers $180 billion.

Greenberg's creation more than two decades ago of a financial products unit, which has triggered the bulk of AIG's massive losses, is their main focus.

Credit default swaps, or CDS, held by AIG Financial Products have been the biggest driver of AIG's losses, which have exceeded $100 billion over the past five quarters.

"The bottom line is that Hank Greenberg wandered out of the very safe, well-capitalized world of insurance into the surreal world of credit default swaps where you can create endless amount of risk," said Christopher Whalen, co-founder of Institutional Risk Analytics, which provides analysis and ratings to banks.

CONTINUED...

http://uk.reuters.com/article/stocksAndSharesNews/idUKLNE52200B20090303

Alcatraz is too good for these turds.

[No Elephants]

2. And all of it happened on Dummyas watch. This is NOT what Truman mean when he put a sign on his

desk in the Oval Office saying "The buck stops here."

[Octafish]

8. These un-American turds have looted the Treasury and avoided taxation.

To me, they're traitors. To them, they're doing their "patriotic duty" of worshippping the Almighty...

Know your BFEE: Goldmine Sacked or The Best Way to Rob a Bank Is to Own One

Know your BFEE: Phil Gramm, the Meyer Lansky of the War Party, Set-Up the Biggest Bank Heist Ever.

...Dollar.

[Jambalaya]

3. Fish Rots from the Head

neo-Nazi Bush/Fed/NWO/City of London/BCCI/AIG forced USA financial ...2 posts - 1 author - Last post: Oct 4, 2008
The program begins with review of an article by Lucy Komisar stressing that the U.S. government should use its stewardship of AIG to ...
www.abovetopsecret.com/forum/thread411986/pg1 - 39k - Cached - Similar pages

Lucy Komisar | Spitfire ListShowing 1 result for the tag: Lucy Komisar. FTR #387 Interview with Lucy Komisar on The Financial War on Terror. Financial aspects of the abortive “War on ...
spitfirelist.com/?tag=lucy-komisar - 79k - Cached - Similar pages

t r u t h o u t | AIG's Past Could Return to HauntDec 19, 2008 ... Part II: AIG's Offshore Strategies Hide a Scam. Friday 19 December 2008. » by: Lucy Komisar, Inter Press Service ...
www.truthout.org/121908C - 31k - Cached - Similar pages

[Octafish]

9. Dallas's gotten Crawford's Idiot back

Dave Emory grabs 'em by the nose and Lucy Komisar kicks AIG in the pants...

http://spitfirelist.com/?p=2339

http://wfmu.org/playlists/DX

Thank you for some excellent articles, there, too, Jambalaya.

PS: A belated and hearty welcome to DU!

[MIB Mastermind]

4. AIG Bailout

Lets hope their is no bailout this time with the tax payers money and government should let them go bankrupt and worry more about the economy first instead of giving them billions of dollars.

Bryan

http://www.myinternetbusinessmasterminds.com

[recoveringdittohed]

5. Wikipedia article on Liddy has interesting info

At the same time Liddy was CFO at G.D. Searle, Donald Rumsfeld was CEO. Things that make one go hmmm.

[sandnsea]

6. SOLD, the world is SOLD

When will they take responsibility for creating the sales and marketing that SOLD the shit that blew up in our faces.

[gratuitous]

10. Greenberg is suing AIG for securities fraud

But I'm sure that has nothing to do with this rich man's pissing contest.