Hank Greenberg used to be the CEO of AIG. He was partly responsible for the implosion of that company and, besides, he is no stranger himself to corruption and fraud. He does, however, reveal some of the grimy details of his relationship with the likes of Goldman Sachs and the government officials who acted during the financial crisis.
It's all about greed and no one's reputation can be redeemed from Greenberg's description of what are pretty much self-serving and profit-loving crony capitalists in full regalia.
Goldman, gov 'rolled AIG'
By Paul Tharp - NYPost
Payback’s a bitch. Just ask veteran insurance titan Hank Greenberg.
In his new book, “The AIG Story” (co-written with Lawrence A. Cunningham and coming out this week), Greenberg says that in the summer of 2008, the company was in contentious talks with Goldman Sachs and other investment banks to settle trillions in claims on questionable derivatives linked to debt obligations that Wall Street banks were writing.
Before any deal could be brokered between Chief Executive Robert Willumstad and the banks, Lehman Bros. filed for bankruptcy, and AIG, along with hundreds of other firms, were no longer able to fund day-to-day operations.
Willumstad was talking with NY Fed chief Tim Geithner and Treasury officials the weekend prior to Lehman’s filing, to get a temporary loan.
Greenberg points out, “The Fed opened its discount window to nearly any applicant, dispensing hundreds of billions in loans to nearly any applicant. Dexia of Belgium, Depfa Bank of Ireland, the Bank of Scotland, and the Arab Banking Corp., then 29 percent owned by the Libyan central bank.”
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