- Title: USA: Former head of AIG Greenberg blames successors for company collapse
- Date: 3rd April 2009
- Summary: WASHINGTON, D.C., UNITED STATES (APRIL 02, 2009) (UNRESTRICTED POOL) HOUSE OVERSIGHT COMMITTEE SWEARING IN OF FORMER AIG CEO MAURICE "HANK" GREENBERG (SOUNDBITE) (English) REP DARRELL ISSA (R-CA)SAYING: "As CEO of AIG, it is clear that for the first 35 years you built a company that the world admired, your market capital was second to none, the largest in your industry and one of the largest in the world. It is also clear that the crumbling of AIG began on your watch, that there were systemic problems that had occurred."
- Embargoed: 18th April 2009 13:00
- Keywords:
- Location: Usa
- Country: USA
- Topics: Industry
- Reuters ID: LVA5XXSK6Y1IY9LR29641S4R21XM
- Story Text: Maurice Greenberg, the former head of AIG was called before a congressional panel on Thursday (April 2) to explain his role in the problems at the former insurance giant that led to as much as 180 billion U.S. dollars in taxpayer funds being used to prop up the company.
The top republican on the Committee, Darrell Issa said the problems at AIG had its roots in Greenberg's tenure, who stepped down in March of 2005.
"As CEO of AIG it is clear that for the first 35 years you built a company that the world admired, you market capital was second to none, the largest in your industry and one of the largest in the world,. It is also clear that the crumbling of AIG began on your watch, that there were systemic problems that had occurred."
Greenberg, who was CEO for 35 years, sought to distance himself from the problems leading to the stunning losses at the company.
"I share your concerns and the concern of the American people that the terms of the AIG bailout and its tremendous burden on taxpayers. All plans so far advanced by the US government to date have failed, and they current plan, in my opinion opinion will not succeed."
Greenberg put the blame on his successors.
"AIG's business model didi not fail, its management did. AIG's business model has a long track record of success, over many decades. AIG can receive from its immediate crisis, continue to employ tens of thousands of hard working Americans and repay the assistance that it has received form the American taxpayer. But only if the government and AIG management change their approach in dealing with its future."
Greenberg said government's aid to AIG should be one that relies on "government guarantees and long-term government-funded debt and encourages private capital to replace government ownership over time."
AIG and Greenberg remain locked in various legal disputes and Thursday's testimony will mark Greenberg's first public appearance under oath since the insurer's bailout in September. - Copyright Holder: POOL (CAN SELL)
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