Former AIG Head Passes Blame

Maurice Greenberg, the former head of AIG was called before a congressional panel to explain his role at the former insurance giant that led to as much as $180 billion in taxpayer funds used to prop up the company. The top Republican on the committee, Darrell Issa said the problems at AIG had its roots in Greenberg's tenure, who stepped down in March of 2005. [Darrell Issa, Republican Committee Member]: "As CEO of AIG it is clear that for the first thirty five years you built a company that the world admired, you market capital was second to none, the largest in your industry and one of the largest in the world. It is also clear that the crumbling of AIG began on your watch." Greenberg, who was CEO for thirty five years, sought to distance himself from the problems leading to the stunning losses at the company. [Maurice Greenberg, Former AIG CEO]: "I share your concerns and the concern of the American people about the terms of the AIG bailout and its tremendous burden on taxpayers. All plans so far advanced by the U.S. government to date have failed, and they current plan, in my opinion will not succeed." Greenberg put the blame on his successors. [Maurice Greenberg]: "AIG's business model did not fail, its management did." Greenberg said government's aid to AIG should be one that relies on government guarantees and long-term government-funded debt and encourages private capital to replace government ownership over time. AIG and Greenberg remain locked in various legal disputes. His testimony marks Greenberg's first public appearance under oath since the insurer's bailout last September.

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