Testifying before the
AIGs business model did not failits management did, he testified. AIGs business model has a long track record of success over many decades.
Elsewhere in his remarks, Greenberg sought to deflect criticisms that the company had a lax approach to risk management.
AIG had a unique culture when I was its CEO, particularly in comparison with the way many large public companies operate today, he said. We had comprehensive and conservative risk-management structures and procedures.
Moreover, Greenberg charged that the multi-billion dollar bailout plan conceived by former Treasury Secretary Paulson to liquidate AIG has failed.
A successful liquidation is impossible in the present economic climate, since buyers for AIG assets at fair values simply do not exist at this time, he said. Fire-sale prices will bring taxpayers, who now own almost eighty percent of AIG, only pennies on the dollar for their investment in AIG.