The former AIG chief may not testify in his lawsuit against the government for taking his company away, but he can’t stop the government from mentioning—as often as possible—that time he said that AIG was the Titanic and he was the deck-chair-rearranger-in-chief.
Repeatedly, Mr. Dintzer drew out testimony from Mr. Smith that he and Mr. Greenberg were concerned about AIG’s exposure to risk in the bond-insurance and investment areas. “Hank thought they took too much risk,” Mr. Smith agreed at one point. Mr. Smith said his own view was that “mistakes were being made” and the company’s results “were not as good as we thought they could have been….”
Also shown in court was a summer 2008 assessment of some of AIG’s problems worked up for Starr by Perella Weinberg Partners titled “Project Aurora Valuation Analysis.” Aurora was the code name for AIG. One section was headed: “The Roots of Aurora’s Decline.” It noted “Loss of leadership and performance culture” among other items.
Greenberg Absent from AIG Trial, But Government Uses His Words [WSJ MoneyBeat blog]