Stubborn Financial Culture – AIG and “Hank” Greenberg
October 27th, 2009
Maurice “Hank” Greenberg is heading a new corporation, C.V. Starr & Co, Inc. This is important because Hank is the man who led A.I.G. to the heights of our recent and still impacting recession on the wheels of massive CDO securitization and CDS contracts. If you’ve forgotten, the Bush administration agreed to bail out A.I.G. in September 2008 to the tune of $85 billion which was then re-negotiated by that administration in November to a $40 billion disbursement from the TARP with another $60 line of credit from the Federal Reserve. By March of 2009 the Obama administration had increased the bailout to A.I.G. up to $150 billion and A.I.G. wrote down some $60 billion in a first quarter loss.
