Speaking on CNBC, former AIG CEO Hank Greenberg says the company’s current CEO Ed Liddy is just a car salesman and not sophisticated enough to run a global company like AIG.
Last night Greenberg announced plans to sue the company, saying that its misrepresentations about the safety of its CDS book caused him to overpay for the stock when he exercised his deferred compensation that had been built up over a lifetime of employment at the firm.
He also claims — though it’s impossible to know — that he would’ve never let the CDS book get so big and unhedged. Again, who knows. But if true, we can heap more blame on Eliot Spitzer for this whole mess.
So why is Greenberg suing? “I was financially harmed.” He lost over $2 billion in personal wealth, as he says he never sold a single AIG share. Ouch.
We’ll post transcripts and video as it becomes available.