Exclusive Interview: Why Former American International Group Inc (AIG) CEO Hank Greenberg Sued the Government for $25 Billion

So “14.5%, $85 billion, and we’re taking 79.5% of the equity of the company,” and incidentally he tells Willumstad, “You’re fired.” Here’s the Secretary of the Treasury, calling a public company CEO and firing him. Is this America? Does the government fire CEOs? I hadn’t heard that before.

He then says to Willumstad, “Sign that agreement” that I just related to you.

He says, “Just fire me. I’m not signing the agreement,” so Paulson sends in his replacement, a guy called Ed Liddy who’s on the Board of Goldman Sachs (NYSE:GS). He signs the agreement, still as the director of Goldman Sachs and resigns from Goldman Sachs three days later, retroactively. Very unusual, to say the least.

Of the $85 billion that they lent AIG … AIG had about $800 billion of assets. They had plenty of collateral. They didn’t have to take 79.5% of the equity at the time.

Now you’ve got the $85 billion; $60 billion goes out the back door almost immediately, $12 billion goes to Goldman Sachs, of the $85 billion. They force AIG to give a complete release to those who got the back-door bailout so AIG can’t sue them later on for unlawful pass-through, and they put a gag order on American International Group Inc (NYSE:AIG) that they can’t talk about it.

It took us years to get the information that’s in the book, and it’s all verified in there. Why are we suing the government? I just told you why.

The article Exclusive Interview: Why Former AIG CEO Hank Greenberg Sued the Government for $25 Billion originally appeared on Fool.com and is written by TMFHousel.

TMFHousel has no position in any stocks mentioned. The Motley Fool recommends American International Group (NYSE:AIG) and Goldman Sachs. The Motley Fool owns shares of American International Group and has the following options: Long Jan 2014 $25 Calls on American International Group.

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