Former AIG CEO Greenberg Defends Reputation

Former AIG chief executive Hank Greenberg is defending himself against criticism that his creation of AIG’s Financial Products unit was what ultimately led to the company’s spectacular decline.

“I’ve been out of the company for four years,” he said in an interview with ABCNews.com. “How could I be responsible for the problems they are suffering?”

A source close to AIG told ABC News that Greenberg was to blame for creating a unit that “put the whole company and the whole economy at risk.”

But Greenberg, who also criticized AIG for its retention bonuses today, said that under his tenure, the unit earned $5 billion by writing credit default swaps — financial instruments that essentially act as insurance policies on other investments — that passed the standards set by “the best risk management (departments) in the damn industry.”

Read more at ABCNews.com.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s