Poetic Justice

March 3, 2009

 Greenberg claims he was deceived by AIG

 

Now he says AIG executives fooled him into purchasing shares months before they revealed the insurer was essentially bankrupt

 

Join the club, Maurice.  Now you know how common stockholders (and taxpayers) feel.

 

Greenberg sued American International Group in federal court on Monday, claiming he purchased shares early last year, part of his deferred compensation plan, based on a healthy financial picture provided by his successor, Martin Sullivan.

 

This is rich.  The irony here is that Maurice ‘Hank’ Greenberg worked at AIG for 38 years.  If any one person knew and understood the complexity and risk of AIG’s business model, it was Greenberg.

 

At the time the stock traded for around $54. Today those shares, and much of Greenberg’s fortune, are almost worthless.

 

With a net worth once estimated at $3.2 billion dollars, Greenberg will find few sympathizers.  I doubt any other octogenarian watching their 401(k) savings evaporate before their very eyes will spend much time feeling sorry for Maurice (sorry, I mean ‘Hank’). 

 

But don’t worry, Maurice, you’ll always have social security to fall back on…

 

 

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