Anger follows clean-up of AIG mess
The US Government’s third bailout of AIG has left a bitter taste in the mouths of the Feds, investors, the rest of the insurance world, and AIG itself.
Former CEO Maurice “Hank” Greenberg is suing the insurer for securities fraud after he reportedly lost $US2 billion ($3.1 billion) as the value of shares plummeted. But AIG has reacted by accusing Mr Greenberg of being directly responsible for creating financial products that contributed to the problem.
While defending the decision to change its bailout arrangements, US Federal Reserve Chairman Ben Bernanke has accused AIG of behaving like a hedge fund rather than an insurance company by exploiting a huge gap in the regulatory system.
He told the US Senate budget committee last week that nothing had made him more sorry during this financial crisis than the AIG situation, but the Government had no choice but to bail the company out as its collapse could have been disastrous for the economy.
Former CEO Maurice “Hank” Greenberg is suing the insurer for securities fraud after he reportedly lost $US2 billion ($3.1 billion) as the value of shares plummeted. But AIG has reacted by accusing Mr Greenberg of being directly responsible for creating financial products that contributed to the problem.
While defending the decision to change its bailout arrangements, US Federal Reserve Chairman Ben Bernanke has accused AIG of behaving like a hedge fund rather than an insurance company by exploiting a huge gap in the regulatory system.
He told the US Senate budget committee last week that nothing had made him more sorry during this financial crisis than the AIG situation, but the Government had no choice but to bail the company out as its collapse could have been disastrous for the economy.