Former AIG boss denies responsibility for crisis
Maurice ‘Hank’ Greenberg, founder and former chief executive of troubled US insurer American International Group (AIG), has claimed that he is not responsible for the problems at AIG, as they happened after he left.
Greenberg, 83, retired in 2005 as AIG’s CEO after 38 years at the helm following an accounting scandal at the company.
Hauled before a Congress committee this week, and asked if he took any responsibility for the downfall of AIG, Greenberg said, “No, I do not.”
These words were spoken as Greenberg appeared before the House Committee on Oversight and Government Reform last Thursday to give answers on why the company had to be rescued from the verge of collapse using government money in September last year.
Darrell Issa, rank Republican on the committee, said to Greenberg in his opening remarks: “Crumbling of AIG began on your watch.”
Greenberg was reminded that he set up the financial products business at AIG that traded in credit default swaps – the main cause of AIG’s downfall.
However, Greenberg denied that he encouraged the business to take unnecessary risks.
“As far as I know there were no losses on the credit default swaps,” Greenberg said.
“When I left the company, it was a healthy company. We had no problems.”
Category: Companies News, Insurance News
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