Posted on 03/03/2009 9:07:02 AM PST by marshmallow
Former American International Group Inc. (AIG) Chief Executive Maurice "Hank" Greenberg has sued the company, alleging securities fraud tied to misrepresentations of billion of dollars in losses on the company's portfolio of credit default swaps.
Greenberg, who led the insurance giant for almost 40 years, claimed misrepresentations by the defendants - which include former Chief Executive Martin Sullivan, former Chief Financial Officer Steven Bensinger, the former head of AIG's financial products division, Joseph Cassano, and four directors - led him to acquire stock in AIG at an artificially inflated price as part of his deferred compensation plan.
Greenberg, who is seeking a jury trial and a recovery of the difference in value between the price he paid for the shares and the "true and fair" value, was forced to resign as chairman and chief executive of the company in March 2005 under a shadow of criticism from then New York Attorney General Eliot Spitzer amid fraud charges.
In the lawsuit, filed Friday in New York federal court, Greenberg alleged AIG executives made repeated statements touting the company's sophisticated and conservative risk management strategies in limiting losses tied to its credit- default-swap portfolio and "recklessly ignored" facts indicating AIG was facing mounting losses on the portfolio.
The company teetered on the brink of collapse in September before getting a hefty bailout from the U.S. government. Earlier Monday, AIG posted a record quarterly loss on $64.1 billion in write-downs and charges and said it will receive another $30 billion in capital from the government.
Greenberg, who claims he incurred hundreds of million of dollars in losses on the securities when AIG's stock price plummeted, alleges the defendants acted with "gross, wanton or willful fraud or other morally culpable conduct" with a conscious disregard of the rights of others.
(Excerpt) Read more at money.cnn.com ...
What a laugh. Cry me a river, Hank.
We need a class action lawsuit against AIG and Cassano and his buddies on behalf of the American taxpayer.
Pour this guy some concrete shoes, and throw him into the ocean.
Don’t you see? Hank’s the VICTIM here, I tell you!
A nominee for the chutzpah hall of fame.
Not to mention all the people who have lost the value of their retirement savings they had with the company. I wonder if it would not be cheaper for the taxpayer (which includes those who are holding these now worthless retirement savings plans) to just pay out these people, and let AIG become part of history.
I could care less if some billionaires loose all their money. In fact it is those select few who SHOULD be loosing all their money. That is, after all, where all this money seems to be going that all these banks and AIG companies seem to be loosing, isn't it?
Where IS this money going? How much does Soros have now? let's just take it all back from these crooks, the Rockerfellers and all the rest of those elitists that want to divide up the world amongst themselves and rule the world from their UN sanctuary
If the enemies (Wall Street bankers/financiers) of main street America fight amongst themselves, keep your mouth shut and watch. Who knows what useful dirty laundry comes out of the mess that we can use to prosecute other enemies of America.
Place neck deep in sand and release fire ants.
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