A.I.G. Wisely Says "No" to Maurice Greenberg, Poster Child for Greed and Ingratitude

This week, A.I.G. bought television time to run ads thanking America for bailing them out in 2008 when it looked like the company would go under.  The U.S. Treasury recently sold the last of its stock back to A.I.G. for a profit.

On that basis, former top executive Maurice Greenberg is suing the United States over the bailout claiming the terms required by the U.S. Treasury hurt the interests of stockholders, including himself, by unfairly diluting the holdings of shareholders and thus denying them profits that went instead into the U.S. Treasury. 

On Wednesday, Mr. Greenberg met with A.I.G.'s Board of Directors in attempt to persuade them to join his lawsuit.  After being hit with widespread negative publicity earlier in the week when news of the meeting became known, A.I.G. wisely declined Mr. Greenberg's offer.  He will continue on his own.

what eye thynk:    Talk about looking a gift horse in the mouth!  Mr. Greenberg is upset that, rather than lose money by saving his company, (which apparently would have been fine with him--I doubt, had that happened, we would be seeing Mr. Greenberg offering to reimburse us for our generosity), the U.S. Treasury actually made a profit and now he sees that profit as rightfully belonging to himself and his fellow stockholders.  Really?  How did they earn it?  By driving the company to the brink of total collapse?

The company was in crisis because of toxic investments and a board of directors that failed to properly oversee their mortgage businesses.  When the U.S. Treasury stepped in to save the company in 2008, the situation was so bad that there were no private investors willing to finance the company through a managed bankruptcy.  

We, the taxpayers, took a chance--a huge chance--to try to save the company.  Without the U.S. Treasury, A.I.G. surely would have gone the way of Lehman Bros.  The Board of Directors of A.I.G. agreed to the government’s terms for a bailout and were happy to be saved from the prospect of losing everything.  Mr. Greenberg voiced no objections at that time.

So now, rather than being grateful he still has an A.I.G. investment portfolio, he wants to bite the hand that saved him.  With his ridiculous lawsuit, Mr. Greenberg has managed to take greed to a whole new level.  Disgusting.