AIG Trial Begins for the Case of Hank Greenberg
The case of Starr International Co. Inc. v. United States is about the legality of Washington’s move to stave off AIG’s bankruptcy in exchange for about 80 percent of common stock. Through Starr, Greenberg still owned about 11 percent of AIG’s shares, making him its largest individual shareholder. That also made him arguably the largest casualty of the deal, which saw taxpayers ultimately gain $22.7 billion in profit from $182 billion in loans. AIG’s existing shareholders, in contrast, got about $500,000 for the $35 billion in shares that went under public control.
While Greenberg no doubt cares about the tens of billions at stake in the trial–David Boies is representing Starr—he seems even more concerned about the legacy he built at AIG.
Many legal experts believe the government will prevail in its case that the crisis justified the conditions of AIG’s bailout. Whether or not Greenberg wins, the trial will give him another chance to remind people what AIG was under his leadership. For a man whose reputation remains complicated, that’s an opportunity worth fighting for.
Source: businessweek- AIG Trial Begins for the Case of Hank Greenberg
