Former AIG Chairman Greenberg Will Testify in SEC Probe
According to CNBC-TV, former Chairman of American International Group Maurice "Hank" Greenberg has agreed to testify before federal regulators regarding a multi-year probe into finite-reinsurance deal. His lawyer, David Boies, stated that Mr. Greenberg received a subpoena from the Securities and Exchange Commission and will testify later this month.
The subpoena, issued almost two years after AIG agreed to settle accounting allegations related to finite reinsurance, indicates that the SEC is not backing away from finding out Mr. Greenberg’s role in the accounting practices. Finite-reinsurance products allegedly can be used to burnish a company's financial results.
The SEC wants to speak with Mr. Greenberg regarding several finite-reinsurance deals AIG struck with other companies.
The development is the latest in an investigation and comes on the heels of Mr. Greenberg's new role as a private investor through Starr International Co., a fund once affiliated with AIG. Mr. Greenberg resigned as chairman of AIG in March 2005 amid state and federal investigations into how the insurance giant accounted for certain reinsurance deals.
Published on September 11, 2007
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