American International Group's former chairman and chief executive officer, Maurice Greenberg, is suing his old company, charging that excessive speculation in risky derivatives and lack of disclosure after he left caused him to lose money in stock purchased on his behalf in deferred compensation plans.

On CNBC yesterday, Mr. Greenberg said his losses totaled $2 billion. "I was hurt very badly," he said.

According to the suit, the stock was awarded to him by Starr International Company--formerly an exclusive managing general agent for AIG. The two firms split apart soon after Mr. Greenberg departed in 2005, as a part of a settlement between the companies.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.