Former AIG Chief Greenberg to Testify Today

Former AIG chief Maurice “Hank” Greenberg will go before a House committee on Capitol Hill today, testifying about the world-wide conglomerate that is now the most infamous culprit of the financial crisis, despite efforts by both the GOP and current AIG management to undercut his credibility. Greenberg is expected to recommend trimming the government’s stake and pressuring trading partners to funnel their own bailouts into AIG as an investment, the Wall Street Journal reports.

Greenberg, pressured by an accounting investigation, stepped down in 2005 and has claimed no responsibility for AIG’s current state. But he led the expansion that created the financial-products unit that has crippled the company and hired many of its current executives. In prepared testimony, Greenberg argues for reducing the government stake from 80% to 15% to attract private investors and pressuring large banks to invest in AIG. AIG yesterday released a detailed dossier attacking Greenberg, and California Rep. Darrell Issa sent a letter to the committee asking to take him off the agenda.
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