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Greenberg: AIG Will Be Liquidated

By    |   Wednesday, 07 Jan 2009 02:53 PM

Maurice Greenberg, AIG's former CEO who built the company into the monolith it became, says the company is likely to be liquidated by the government, and he's not happy about it.

The government took over too much control of the company in the bailout that began in September, Greenberg told CNBC.

"The plan the government came out with was very Draconian," he maintains. "It left the government with 79.9 percent ownership in the company, and so, essentially, it was nationalized."

Greenberg says the whole affair could have been handled differently. He questions AIG's drive to sell off parts of the company to raise capital.

"You can't pay back the taxpayer by selling assets in this market," he says. AIG will have trouble garnering full value for the units it sells, as the market for insurance companies has plummeted.

Greenberg also questions the company's controversial offers of $400 million in retention bonuses to 168 key employees, something that has raised the ire of many critics.

"Retention bonuses are not going to keep the good people," he says.

Greenberg's preferred strategy: "Build the company back to what it was, and sell assets at a much later date."

He dismisses current CEO Edward Liddy as "a liquidator."

Liddy defended his policies in a CNBC interview, saying asset sales can help the company pay back taxpayers by the end of next year.

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Maurice Greenberg, AIG's former CEO who built the company into the monolith it became, says the company is likely to be liquidated by the government, and he's not happy about it.The government took over too much control of the company in the bailout that began in September,...
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Wednesday, 07 Jan 2009 02:53 PM
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