In response to this morning's post, re: the insurer suing Greenberg-controlled Starr International, an off-shore entity set-up in the 70's as a kind of retirement fund for AIG execs, AIG said in a statement to DB:
On June 15th Maurice "Hank" Greenberg will finally have to tell a court why he absconded with 290 million shares of AIG stock in 2005 after he refused to cooperate with an accounting investigation. Starr International Company was the compensation trust for AIG's employees. Greenberg has long controlled SICO and evidence at the trial will show that he repeatedly promised that SICO's AIG shares were for the compensation of current and future AIG employees. Yet Greenberg took the shares when he left AIG amid accounting scandals that marked the beginning of AIG's downfall. AIG is asking the court to put those shares back into the hands of reliable trustees who will put the shares to work for AIG and American taxpayers.
Now, with the trial only days away, Greenberg is trying to convince the world that SICO is a charity. SICO certainly wasn't a charity before this lawsuit began. In fact, SICO only donated 0.005% of its worth. Only after AIG brought this action did SICO suddenly and cynically show charitable tendencies. AIG isn't trying to take anything from charities. It is seeking to recover from SICO $4 billion in value that belongs to AIG shareholders and American taxpayers. Instead of using transparent tactics to delay and confuse, Mr. Greenberg should return the value he took inappropriately or defend his case in court.