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Greenberg vs. AIG

The long-running drama starring Maurice "Hank" Greenberg and the insurer he built, AIG (AIG), went into its fifth or sixth act as a trial began in a Manhattan courtroom on June 15. This time the focus is on a pool of stock that Greenberg, now 84, sold in his capacity as chairman of Starr International after being ousted from AIG in 2005. AIG claims the stock, worth $4.3 billion in 2005, was part of a deferred compensation program for past, present, and future high-performing employees and that the sale was improper. Starr is being sued by AIG and maintains the stock was part of a charitable trust and not the property of AIG. Although Greenberg has already taken the stand as a hostile witness, further fireworks may be limited by the judge's early ruling that AIG's eventual financial meltdown and government bailout are out of bounds.

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