Hank Greenberg: AIG’s TARP funds were mostly just pay outs to benefit Goldman Sachs et all funneled through AIG.
By Daniel at 18 November, 2009, 11:03 am
“Former AIG CEO Hank Greenberg says everyone would have been better off filing Chapter 11, taxpayers won’t be paid back the TARP funds lent to AIG unless the loan terms are restructured, and he is not poaching AIG employees.
Also, he’s no longer a billionaire.
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Greenberg doesn’t think AIG should have agreed to the original “mob terms” of the $85 billion loan, they would have been better off Chapter 11. Actually, says Greenberg: “Everybody would have been better off Chapter 11.”
The problem, Greenberg says, is that AIG was held responsible for the full 100-cents-on-the-dollar repayment of insurance loans it made to the big banks, even though they were only selling at “40-50-60 cents.” So essentially, he says, AIG’s TARP funds were mostly just pay outs to benefit Goldman Sachs et all funneled through AIG.
But were the banks too big to file Chapter 11? Greenberg says the feared domino effect can not be proved or disproved.
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