![]()
- Despite Rhetoric, Obama Has Few Options to Boost Jobs
- US Debating What to Do With Billions of TARP Money Left
- US Starts Fiscal 2010 With $176 Billion Gap for October
- Forecast From Retailers: Proceed With Caution
- Cities With the Most Home Price Reductions
- Disney CFO and Parks Chief to Swap Roles
- Housing Recovery 'In Uncharted Territory': HUD Chief
- For Video Game Makers, Stakes Are High for Holidays
- In Charity Tax Filing, a Real Glimpse of Goldman Sachs
- 5-Star Manager's 5 Stocks for Different Conditions
- What's The Forecast from Retailers? Proceed With Caution
- Disney's CFO-Theme Park Chairman Executive Swap
- Road Rage Rants
- Housing Recovery 'Still In Uncharted Territory': HUD Secretary
- S&P Stocks Trading at New 52-Week Highs
- Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia Business Students
- Big Bounce Coming — Play These 6 Stocks: Chief Investor
- Wal-Mart Looks Even Better Next Quarter: Strategist
MOST SHARED
- Meet The Leaders of the New Retail Revolution
- Obama Plans Jobs Summit But Not Second Stimulus
- A Public Hearing That Isn't Public
- "Friending" Big Pharma
- Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia Business Students
- Disney CFO and Parks Chief to Swap Roles
- For Video Game Makers, Stakes Are High for The Holidays
- Despite Rhetoric, Obama Has Limited Options To Boost Jobs
- Smoking on Rise Again: More US Adults Lighting Up
Settlement negotiations between lawyers representing former AIG chief Hank Greenberg and the New York Attorney General are at a stalemate as both sides continue to bicker over how best to describe actions that led to a civil lawsuit charging Greenberg with accounting fraud while he was CEO of the insurance giant, people with knowledge of the matter say.
Greenberg is also balking at the common language that goes with civil regulatory settlements, that the target "neither admits or denies wrongdoing," said person close to Greenberg who added that Greenberg believes that such a statement is "equal to admitting guilt."
A spokesman for Greenberg had no comment.
People with knowledge of the matter say Cuomo's office is seeking a large fine from Greenberg, possibly as much as $100 million or more to bring an end to the three-year-old case, originally filed by former New York AG Eliot Spitzer.
But the sticking point isn’t money—it’s how the final settlement agreement will read, these people say. Greenberg is looking for a deal where the final settlement eliminates or greatly diminishes his culpability in the alleged actions described in the suit alleging that he committed accounting fraud by covering up losses and pumping up reserves at AIG [AIG
Loading...
()
].
One person close to the case describes a possible settlement deal as "50-50" given the tone of the recent negotiations. If a deal isn’t worked out soon, the AG’s office plans to take Greenberg’s deposition some time this month, these people say.
![]() |
AP Maurice "Hank" Greenberg |
A spokesman for New York Attorney General Andrew Cuomo didn’t return a call for comment. A spokesman for Greenberg had no immediate comment.
People inside Cuomo’s office are betting that in the coming days Greenberg will relent because his attorneys are looking to avoid a deposition, in which Greenberg would be questioned under oath.
The US Attorney’s office won convictions of a former AIG official and several executives from General Re over the same suspicious transaction that is part of the New York AG’s case. “Given the obvious interest from the Feds, the last thing Greenberg’s lawyers want is his a deposition on this,” said one attorney close to the case.
It is typical in civil cases for defendants to settle with admitting or denying wrongdoing. For his part, Greenberg staunchly believes he’s done nothing wrong, and people close to the former AIG chief say he's open for compromise on anything, but will not accept a deal where the language in the settlement even hints that he’s admitting culpability.
“He is willing to settle, but one thing Hank won’t do is admit guilt,” said one person close to Greenberg.
- CNBC is blogging a talk given by Warren Buffett and Bill Gates to students at Columbia University.
- US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
- They may have wrecked their company or saved our economy. Tell us what you think.
- A European dating site finds lovelorn singles from one country to be consistently uglier. Which is it?
- Contributor David Pogue looks at two of the latest efforts to perfect the digital pocket camera.
- Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.













