AIG ex-CEO Greenberg eyes reversing NY fraud case - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

AIG ex-CEO Greenberg eyes reversing NY fraud case
Started:May 14th, 2012 (06:42 PM) by kbit Views / Replies:220 / 0
Last Reply:May 14th, 2012 (06:42 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

AIG ex-CEO Greenberg eyes reversing NY fraud case

Old May 14th, 2012, 06:42 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

AIG ex-CEO Greenberg eyes reversing NY fraud case

(Reuters) - Former American International Group Inc Chief Executive Maurice "Hank" Greenberg said New York's attorney general should be barred from invoking a 91-year-old state law in a fraud case over two suspect reinsurance transactions.

Greenberg and co-defendant Howard Smith, AIG's former chief financial officer, sought permission on Monday to appeal to the state's highest court, the Court of Appeals, a May 8 appellate ruling letting Attorney General Eric Schneiderman pursue civil fraud claims against them under the state's Martin Act.

That ruling by the Manhattan appeals court cleared the way for the 7-year-old case to go to trial.

Investigators claim a transaction with General Re Corp, a unit of Warren Buffett's Berkshire Hathaway Inc, helped AIG inflate loss reserves by $500 million without transferring risk, while a transaction with Capco Reinsurance Co helped AIG hide more $200 million of losses. Both transactions took place more than a decade ago.

Unlike under federal law, the Martin Act does not require investigators to prove intent in order to prevail on a securities fraud claim.

According to David Boies, a lawyer for Greenberg, a key issue is whether Schneiderman may use the Martin Act "to pursue a de facto securities class action" on behalf of shareholders, despite conflicting federal laws designed to promote "uniformity and certainty" in regulating securities.

In a court filing, Greenberg and Smith said that power would make "every executive of a New York company or a company with shares traded on the New York Stock Exchange potentially liable - personally - for substantial damages for misstatements" by their companies, even absent proof of intent or reliance.

Granting such power would have "far-reaching implications for New York's continuing role as an economic and financial capital," they added.

James Freedland, a spokesman for Schneiderman, said: "We are confident that their latest attempt to reverse decades of settled law to escape responsibility for their misconduct will be rejected."

Greenberg and Smith were first sued in 2005 by Eliot Spitzer, then New York's attorney general. Spitzer's successors Andrew Cuomo and Schneiderman have continued to pursue the case.

Greenberg, 87, left New York-based AIG in March 2005 after nearly four decades at the insurer's helm.

AIG's transaction with General Re led to five convictions and two guilty pleas of former officials of those companies. A federal appeals court threw out the convictions in August and a new trial has been scheduled for January 2013. Buffett was not accused of wrongdoing.

The U.S. government still owns 61 percent of AIG, following $182.3 billion of taxpayer-funded bailouts.

Greenberg's company, Starr International Co, once AIG's largest shareholder, has sued the government for $25 billion over the bailouts, which it has called unconstitutional.

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > AIG ex-CEO Greenberg eyes reversing NY fraud case

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Credit Suisse to face National Century fraud case kbit News and Current Events 0 March 2nd, 2012 10:12 PM
Goldman CEO Blankfein deposed in insider case kbit News and Current Events 0 March 2nd, 2012 07:07 PM
Does the Euro Zone's Crisis Have Its Own AIG? Quick Summary News and Current Events 0 June 23rd, 2011 07:10 AM
New Home Sales Plunge To Record Low, Reversing Gains Quick Summary News and Current Events 0 June 23rd, 2010 11:00 AM
Reversing DavidHP Platforms and Indicators 4 September 17th, 2009 11:44 PM

All times are GMT -4. The time now is 12:59 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-21 in 0.07 seconds with 19 queries on phoenix via your IP