A long business soap opera ends: AIG and Greenberg settle


Maurice R. "Hank" Greenberg did not start AIG (AIG), but he might as well have. Greenberg took over as head of the insurance company in 1968, the only CEO other than its founder C.V. Starr. Greenberg turned AIG into the largest insurance firm in the world. In 2005 he left during an accounting scandal, then shortly after his departure, problems with toxic assets on the firm's balance sheet nearly took the company under. A series of government investments totaling $180 billion kept AIG in business. Washington was worried that a collapse of AIG would bankrupt a number of other large companies that had relationships with the firm.

On Nov. 25, AIG and Greenberg agreed to settle all of the outstanding legal issues between them. According to an 8-K filed with the SEC, Greenberg and AIG's former CFO will receive reimbursement of their legal fees of up to $150 million. AIG also dropped a $1 billion claim against Greenberg. Some of Greenberg's property, much of it from his old office, was returned to him. He will also have access to some AIG files "to write his memoirs."

Originally published