New York — Maurice "Hank" Greenberg, the former chief executive of American International Group Inc., is seeking more information from the company on its agreement with the U.S. government over assets that have cost the giant insurer dearly.
Greenberg, a large AIG shareholder, wrote to Chief Executive Edward Liddy on Monday, asking for more disclosure on the government's agreement to buy up to $70 billion in toxic mortgage assets underlying AIG's credit default swaps (CDS), a type of debt guarantee.
"Investors in AIG securities need to know the answers to these questions and U.S. taxpayers should know how their tax dollars have been used," he said in the letter.
Greenberg wants to know the identity of counterparties to these agreements, and payments so far to these parties.
The need to post increasing amounts of collateral to counterparties has left AIG deeply in the red over the last four quarters. It has lost $42.5 billion in that period.
Greenberg, who ran AIG for 38 years, also asked for more information on a second government agreement to transfer residential mortgage-backed securities from a securities lending portfolio.
AIG did not immediately comment on Greenberg's letter.
Greenberg wants the government to do more for AIG, suggesting it provide guarantees to cover counterparty collateral agreements, according to an opinion piece in the Wall Street Journal on Tuesday.
The government is providing the guarantee to Citigroup Inc., agreeing to shoulder most losses on about $306 billion of the bank's risky assets.
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