American International Group Inc., which reported the biggest loss by a publicly traded U.S. firm, was sued for securities fraud by former Chief Executive Officer Maurice “Hank” Greenberg.
Greenberg filed his suit today in Manhattan federal court, saying the company’s “material misrepresentations and omissions” caused him to acquire AIG shares in his deferred compensation profit participation plan at an inflated valued.
Maurice Greenberg Sues AIG, Saying Its Shares Were ‘Inflated’ [Bloomberg]
This is why old people are put in homes.
Can you really sue yourself for being incompetent?
shares were inflated by all the things he did during his 30+ year tenure?
Damnit # 2 you beat me, damn this move takes cajones (or Alzheimers?)
If Dylan Ratigan bitches about bank bailouts one more time can we put GE into conservatorship?
Who is doing the stress test on GE Capital?
How about CNBC? How much tax money is propping up that disaster?
@4 Is Alzheimers the new killing it?
the old man is still ballin
Soiling your Depends is the new killing it.
Nothing says gay, like a little white dog.
Isn’t this just basically suing the Treasury at this point?
He will OWN Geithner’s ass when this is said & done.
I don’t care what you say Hammerin Hank is the Effing man.
Anal-yst: Cajones is Spanish for “drawers” like those in a desk.
I’m sure you meant “cojones”.
Many bilingual readers might wonder why such a move, as you described it, would take desk “drawers”.
@12
Bien hecho.
Why is aig.com allowed to continue to generate new business and write NEW insurance? It’s easy to see why people think old policies must be honored, but why keep the pig of ongoing sales alive? Check out all the stuff still available on aig.com.
@14 – the insurance businesses aren’t the problem. The problem was the no-talent ass clowns in Financial Products.
Ideally we’ll sell off all the insurance bits of AIG and recover something for the taxpayer.
Who would want to buy an insurance business that’s just in run off.
Remember that “preserving the franchise” thing Bernanke was talking about? Once you own something, there’s no point in beating the crap out of it if you plan to resell it.
@14
AIG (like many large businesses) has groups that still make money and always have. Selling you a life insurance policy does not equate to writing credit default swaps on Latvian credit card receivables. If they fold up and close down all of their divisions, their investors would be left holding worthless shares and not just be down 99.09% LTM. That would be a disaster.
@8,
“Soiling your Depends is the new killing it.”
Hahahah. I laughed 3 times at that one. It’s the best.
Maurice is the reason old people shouldn’t be allowed to drive. Maurice from AIG, not the Golden Girls.
I know him from being a member of MI, and his ego and douchebaggery is rivaled only by Henry Kissinger’s.
Boo-hoo, Greenberg, you now have done worse than those guys who sue their own mothers. Suing yourself is the new killing it.
Enough already. Shut the whole AIG clusterfuck down. I’m sick of reading these daily headlines about those idiots. You’d think President Obama and his team would be tired of dealing with AIG too. Do a controlled collapse, and let them go Lehman. Geez. Enough!
Jail some of the scumbags and watch the rest scurry back into the woodwork
is it Shecky Greenberg? because, he’s joking, right? the man who cooked the books for 30 years at aig – ie, 30 years of monotonically increasing earnings and dividends, only to be found to have been buying “financial reinsurance”– is now suing AIG over their disclosure? this is like suing Iraq for making us send our army over.
Greenberg belongs in jail
Ahaahahahaahhahahahahahhah
Ahaahahahaahhahahahahahhah
. . .
ahahahahaahahahaha
Deferred compensation? Dumazz, get paid in the present, in cash money just like JJC did. Whats the point of deferred compensation when you’re already a skeletor? So you can get a room at the nursing home closest to the dining room?
Hank the Spank is the one who cooked up the “goldenhandcuffs-we-pay-you-shit-for-40-years-but-if-you-make-it-to-65-without-offing-yourself-you’ll-be-rich” deferred comp model. What an ass gasket — I gotta read that complaint
Does anyone see the irony in all this? The SEC investigated Greenberg and Dick Grasso, looking at possible efforts to prop up AIG’s stock! Here’s a snippet from Forbes:
http://www.forbes.com/2006/06/15/grasso-aig-fifth-cx_gl_0615autofacescan08.html
“…the former New York Stock Exchange chairman invoked his Fifth Amendment rights more than 150 times in a deposition Thursday, according to published media reports. He stuck to his legal guns as federal regulators investigated whether there were any alleged attempts to prop up the stock price of insurance giant American International Group in 2001.
In transcripts obtained by several newspapers, Grasso repeatedly refused to answer questions regarding whether he assisted in putting the screws to AIG’s specialist firm, Spear Leeds & Kellogg Specialists, to help keep AIG’s price higher as the insurer sought to acquire a rival firm.
The rebuffed questions were part of a broader U.S. Securities and Exchange Commission investigation into AIG and its ex-Chairman, Maurice “Hank” Greenberg. ”
Oh yea, as a random, totally unconnected side note, having nothing to do with anything, Greenberg was a director of the NYSE and served on its compensation committee. I’m just sayin’…….