Taxpayer-backed American International Group responded last night to ex-Chairman Maurice "Hank" Greenberg's self-serving testimony in Congress yesterday:
"Hank Greenberg continues to deny his role in allowing AIG Financial Products to write the multi-sector credit default swaps which sowed the seeds for AIG's troubles.... In more than three hours of testimony he evaded the questions and talked about another line of business, 'regulatory capital' swaps, which had nothing to do with AIG’s losses or liquidity problems.
"He refuses to acknowledge that he approved entry into the credit default swap business, approved more than $40 billion of swaps written on CDO’s containing sub-prime loans, and didn't hedge or put up reserves against them.
"The regulatory investigations and litigation surrounding Mr. Greenberg calls into question his credibility and motivations for attacking AIG.
"Rep. (Jason) Chaffetz (R-Utah) posed an excellent question: Where are the AIG shares held by (Greenberg's personal investment company? Mr. Greenberg’s answer -- that they are in a 'vault' somewhere -- was less than candid. As we have said in our suit to recover these assets, Mr. Greenberg has in fact sold more than $4 billion worth of the shares and he should be asked what he has done with those proceeds."