AIG: “We’ll donate Greenberg’s cash to US Treasury”

by David Masters

Story link: AIG: “We’ll donate Greenberg’s cash to US Treasury”

AIG has claimed that it plans to return the $4.3 billion it is seeking to recover from a former chief executive to the US government.

The troubled US insurer said any money it recovers in the lawsuit against Hank Greenberg’s Starr International will be paid into the US Treasury.

“AIG intends to use any monetary damages, including $4.3 billion of illicit stock sales, to repay the company’s debt to the US government,” said AIG spokesperson Mark Herr.

Greenberg’s lawyers have rubbished AIG’s claims, saying that AIG wants the $4.3 billion to top-up executive pay and bonuses.

Starr International’s ownership of AIG stock has been contended since Greenberg left AIG in 2005.

At the time of Greenberg’s departure, Starr held 290 million shares in AIG, then worth $20 billion.

The case opens Monday in a district court in Manhattan.