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Hank Greenberg Issues Statement Denying Involvement in AIG-Gen Re Reinsurance Transaction

Source: Business Wire

Posted on 27 Oct 2010

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Attorneys for Maurice (“Hank”) Greenberg issued a statement today pointing out that he has always rigorously denied participation in or knowledge of any wrongdoing connected to a reinsurance transaction between AIG and Gen Re some 10 years ago.

"As recognized in the opinion of Justice Ramos, filed last week, no one has ever directly disputed Mr. Greenberg’s assertions. Thus, it is not surprising that Justice Ramos found in Mr. Greenberg’s favor on this issue in denying the Attorney General’s motion for summary judgment. This lack of evidentiary support and the inability of the Attorney General to muster a single witness to directly refute Mr. Greenberg’s denial indicates that the outcome of any trial will also follow suit.

The Capco transaction, which has been deemed impermissible by Justice Ramos on an entirely novel theory was structured and reviewed by at least twenty different attorneys at AIG. The evidence conclusively establishes that Mr. Greenberg was specifically advised that the form of the transaction would meet the requirements of all legal, regulatory and tax laws. As any chief executive officer, Mr. Greenberg had a right to rely upon this advice from his experts. Inexplicably, the opinion of Justice Ramos rejects this fundamental principle of corporate governance.

Mr. Greenberg is confident that his appeal will reestablish the standards governing corporate executive reliance and responsibility and the appropriateness of his conduct."