Greenberg's Further Tribulations

A few days after the bombshell from Judge Droney alleged that a phone call from Mr. Greenberg instigated the finite insurance conspiracy, word reached Europe that the Securities and Exchange Commission (SEC) had served a Wells notice on Greenberg. This threatens him with a civil charge primarily for his alleged involvement in the General Re finite insurance case and a situation with Capco Reinsurance Company. Of course, his lawyers--and Greenberg has the best lawyers going--can make a defense against the charges being made. If the SEC staff does not accept this legal refutation, they ask the Commissioners for permission to proceed with the civic proceedings. And very seldom does a Wells notice not go forward.

While the news had a small mention in Europe, it was not really noticed in most of the financial press. Yet there is considerable interest in AIG, more so because of the dramatic drop in the stock and the capital raise. It suggests the focus is on the company not the individual. Whereas in the U.S., Greenberg is such an icon that three years after he resigned, his name and AIG still seem virtually synonymous. Of course, this is true not only because of the high profile legal situation but because he has been aggressive both with AIG and in explaining on televsion and with the print media his views on a variety of matters - from China to the Presidential candidates.