IN 2005 SPITZER INVESTIGATES AIG AND GREENBERG -Part 2
Back in 2005 Elliot Spitzer was investigating AIG and Maurice Greenberg and the then chief financial officer Howard I. Smith for securities fraud and AIG agreed to pay 126 million to settle allegations by Securities Exchange Commission and the Department of Justice related back to the year 2001 which was the beginning of the fuzzy math accounting practices.
Courtesy of the University of Houston
This is not the American Way.
The NY Attorney General was in the process of a wider investigation of finite insurance or financial reinsurance which can be used to fudge earnings. All this was all under the watchful eye of the Republican George Bush administration and the Department of Justice and Greenberg himself is a Republican.
Spitzer also uncovered price fixing and bid manipulation traced back to Maurice’s son Jeffrey Greenberg in October 2007 who was the chairman of the insurance brokerage firm Marsh & McLennan Company Incorporated. How deeply Wall Street is infected with this cancerous greed needs a more open investigation not lobbyists or studies as John McCain would have offered voters.
Jeffrey was also left with a slap on the hand and ordered to repay 850 million dollars in restitution. Although the fine was very high, there were no criminal charges for this high end corruption by federal authorities. The one tip off would have been if AIG was glad to pay a 850 million dollar fine -how much were they getting away with in fraud?
This can be seen as part of the inherent culture of corruption that was allowed to prevail during the Bush administration which is riddled with criminal activities throughout the eight years of power. AIG is simply a corrupt insurance company and the prima donna executives are no different than crooked insurance salesmen who are greedy pigs.
For any critic to even imply that President Barack Obama is to blame for this decay in our financial infrastructure is pure insanity when the perversions were most intensely infecting the economy during the last 8 years. Republicans blaming Democrats now is like calling “foul” in the last inning of a baseball game.
Part Three continues tomorrow.
Tags: President Obama, Republicans, George Bush, Elliot Spitzer, Greenberg, AIG, Marsh & McLennan Co., Maurice Greenber, Jeffrey Greenberg, corruption on Wall Street, Spitzer Fined AIG 850 Million, AIG in 2005, Democrats, John McCain.
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