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INSURANCE
Greenberg: AIG Board Questioned Bonuses
Former American International Group chief executive Maurice "Hank" Greenberg said AIG's board raised questions in 2005 about a retirement bonus plan now being wrangled over in court. About two months before he was ousted, "uneasiness" about the plan was growing, Greenberg said in testimony in federal court.
It appeared the board would not want to continue the plan unless it controlled Greenberg's private firm, Starr International, he said -- and that was "intolerable" to Greenberg and Starr's other voting shareholders.
Minutes from a July 2005 meeting indicate that AIG and Starr International both agreed to suspend the compensation plan. The insurance giant has sued Greenberg's private firm, Starr International, accusing it of plundering an AIG retirement program holding $4.3 billion in stock.
Starr's lawyer David Boies argued Thursday that the fund AIG is trying to reclaim was never intended for AIG.
Greenberg, 84, resigned as CEO of AIG in 2005 during investigations of accounting irregularities. Starr remained AIG's largest shareholder until the government bailed out the insurer last year.
-- Associated Press
LEGAL
Stanford Surrenders To FBI in Virginia
Texas billionaire R. Allen Stanford, chairman of the troubled Stanford Financial Group, surrendered to FBI agents in Stafford, Va., said Dick DeGuerin, his attorney.
A grand jury in Houston has been investigating Stanford Financial Group. The Securities and Exchange Commission filed civil charges this year accusing Stanford and his top executives of conducting an $8 billion fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank.
DeGuerin said Stanford "surrendered this afternoon to some FBI agents who were hiding out in black SUVs outside the residence where he was staying in Virginia."
