Maurice “Hank” Greenberg – the ousted CEO of AIG – has slammed the new management of the company and its auditors, defending his role in the accounting irregularities that have caused a nightmare for the group.

Mr Greenberg – who resigned in June after New York Attorney-General Eliot Spitzer found big problems in the company’s methods and accounting – has sent the regulators a 51-page “white paper” responding to allegations and questioning decisions made by auditors and AIG’s management during the investigations.

AIG overstated its earnings by around $US3.9 billion over the past five years due to improper accounting for certain insurance transactions. After an internal review, the company’s net worth was cut by $US2.26 billion.

But Mr Greenberg says the company’s rush to issue account restatements may be “an effort by the new management to set the bar as low as possible on the investment community’s expectations of AIG’s earnings going forward”.

“AIG’s rush to concede wrongdoing may be explained in part by the current regulatory environment,” he said. “Many of the restatement items appear to be exaggerated and unnecessary.”

Industry observers suggest the tone of the paper suggests Mr Greenberg isn’t going to make a deal with Mr Spitzer.