Hank Greenberg Gets AIG Back (Kinda)

He can't sue on its behalf, but maybe his trusted former deputy can sue on his (No, not Snowflake).
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Former AIG CEO Hank Greenberg (Getty Images)

Former AIG CEO Hank Greenberg (Getty Images)

Maurice “Hank” Greenberg’s 93rd year got off to a rocky start. Just five days after catching his breath from extinguishing 93 birthday candles, he learned the one for good luck did not work: A federal appeals court gave him a belated anti-birthday present, ruling that not only would he not be getting any damages for the Treasury Department’s bailout of AIG, but that wouldn’t even get to keep his pyrrhic victory since he should never have been allowed to sue over it in the first place.

"While punitive measures against a corporation may ultimately be borne by its shareholders, a finding that those measures targeted shareholders directly is a wholly different matter," Chief Judge Sharon Prost wrote for the appeals court.

"The alleged injuries to Starr are merely incidental to injuries to AIG, and any remedy would go to AIG, not Starr," she added.

Greenberg’s lawyers say he’ll take both of those issues up with the Supreme Court, so he’s clearly planning to have several more birthdays. But things have already started to turn around for Greenberg and his beloved dog, Snowflake: After 12 years as persona non grata at the insurer that he left in tip-top shape, he’s making his triumphant return in the form of his septuagenarian protégé.

American International Group Inc. plans to name Brian Duperreault —a onetime lieutenant to former CEO Maurice R. “Hank” Greenberg—as the firm’s chief executive officer, with an announcement expected as soon as Thursday, according to people familiar with the matter.

Mr. Duperreault, 70 years old, is the founder and CEO of Bermuda-based Hamilton Insurance Group Ltd. Mr. Duperreault and AIG are working out final details of his employment contract but are very close to final agreement, according to the people.

AIG Plans to Name Brian Duperreault as Next CEO [WSJ]
Ex-AIG CEO Greenberg loses appeal over 2008 bailout [Reuters]

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