Thursday, May 5, 2005

Greenberg Fires Shot Across AIG's Bow

Former American International Group CEO Maurice Greenberg fired back with a letter to the board of directors disputing the company's assertion that former management skirted internal controls and was not forthcoming about certain transactions (see earlier post here with link to AIG's statement).  Greenberg challenges the conclusions drawn from the internal investigation that accounting rules were violated, asserting that those decisions were made in "good faith" and approved by the auditors but are now being subjected to a "hindsight analysis."  The letter, written on C.V. Starr & Co. stationary -- which is one of the off-shore entities headed by Greenberg that controls a substantial block of AIG stock -- ends with an attack on the company's unwillingness to share information or consult him about the transactions:

I have known many of you for a long time and am puzzled by your refusal to share sufficient information with me to permit me to respond to the vile accusations being made against me and to provide input which could make the Board's findings more complete and accurate.

The battle is joined, on Greenberg's 80th birthday no less. A copy of Greenberg's letter is below. (ph)

Download greenberg_letter_may_4_2005.pdf

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/05/greenberg_fires.html

Investigations, Securities | Permalink

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