Although Maurice “Hank” Greenberg thinks the downfall of AIG (AIG) is totally due to the management that came after him, it was during his time there that the financial products group mushroomed under his hire Joe Cassano. But nonetheless, other than losing his shirt, he’s largely been unscathed in the collapse of the company — which now walks around as a zombie insurer, with the government still breathing down its neck, and tough comp restrictions on top talent.
And if any of that talent would like to leave to a place where they might get paid more, they should give Greenberg a ring.
NYT: Just last week, the Treasury severely limited pay at A.I.G. and other companies that were bailed out by taxpayers. That may hasten the exodus of A.I.G.’s talent, sending more refugees into Mr. Greenberg’s arms, since C. V. Starr is free to pay whatever it wants.
“Basically, he’s just starting ‘A.I.G. Two’ and raiding people out of ‘A.I.G. One,’ ” said Douglas A. Love, an insurance executive who has also hired A.I.G. talent for his company, Investors Guaranty Fund of Pembroke, Bermuda.
While America generally loves stories of entrepreneurs making a comeback, Mr. Greenberg’s success may be at the expense of taxpayers. People who work in the industry say that if he is already luring A.I.G.’s people, he may soon be siphoning off its business and, therefore, its means to repay its debt to the government. Read the whole thing >