It was recently noted that Maurice R. Greenberg, the man who built the American International Group (AIG), is at it again. To fill the ranks of his new venture, C.V. Starr & Company, he is hiring some people he once employed at AIG. Mr. Greenberg’s success may be at the expense of taxpayers. It might be a matter of time before AIG’s business gets siphoned off along with its people. That would impact AIG’s ability to repay its debt to the government.
While Mr. Greenberg is AIG’s largest shareholder aside from the government, it’s clear that Mr. Greenberg’s intent is to build an AIG 2. His new firm seems to be focusing on specialized lines of business insurance that once made AIG stand out. In my opinion, Mr. Greenberg was key in the demise of AIG; from his accounting scandal to risky trading of derivatives. How can taxpayers sit by and watch as the government props up AIG, only to watch a “new” AIG develop with no liability to taxpayers? Only in America can a crook build a business and trump the government at the same time. It’s amazing what money and greed do to people. Somehow, government officials need to either let AIG fold (something they will not do given the investment made) or develop incentives and controls around AIG’s current business model. If the government is unwilling to do this, then once again it’s been duped by a person who’s motive is money; not the wellbeing of the American economy. It’s great to live within a “free enterprise” system where businesses can be built to drive economic growth. It’s unfortunate that being a “crook” doesn’t really make any difference in this process.
While Mr. Greenberg is AIG’s largest shareholder aside from the government, it’s clear that Mr. Greenberg’s intent is to build an AIG 2. His new firm seems to be focusing on specialized lines of business insurance that once made AIG stand out. In my opinion, Mr. Greenberg was key in the demise of AIG; from his accounting scandal to risky trading of derivatives. How can taxpayers sit by and watch as the government props up AIG, only to watch a “new” AIG develop with no liability to taxpayers? Only in America can a crook build a business and trump the government at the same time. It’s amazing what money and greed do to people. Somehow, government officials need to either let AIG fold (something they will not do given the investment made) or develop incentives and controls around AIG’s current business model. If the government is unwilling to do this, then once again it’s been duped by a person who’s motive is money; not the wellbeing of the American economy. It’s great to live within a “free enterprise” system where businesses can be built to drive economic growth. It’s unfortunate that being a “crook” doesn’t really make any difference in this process.
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