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Former executive says AIG is in crisis

The head of American International Group's largest shareholder group and former company chief executive Maurice Greenberg said AIG is in crisis.

In a letter filed with the U.S. Securities and Exchange Commission, Greenberg, who left AIG in 2005 during an investigation into the company's accounting practices, asked that the insurer consider postponing its annual meeting, which is scheduled for Wednesday, The Wall Street Journal reported Monday.

AIG said it plans to raise $12.5 billion after recording first quarter losses of $7.8 billion. AIG said it forwarded Greenberg's letter to board members.

The letter cites a complete loss of credibility with the investment community, the Journal reported.

Copyright 2008 by United Press International


Publication date: 13 May 2008   

Source: UPI-1-20080512-17202500-bc-us-aig.xml

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