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Hank Greenberg
Hank Greenberg was the CEO of AIG until 2005, when he staged his own ouster by means of a phonied-up scandal. His ouster was strategically timed so that it appeared that he was forced sell his AIG shares. He sold those shares at the top of the market. After he liquidated his position, he could continued to prop up AIG’s lucrative derivative market, which held until the value of the securitized mortgages began to crash in 2008.
Greenberg is no stranger to either carefully timed and sophisticated financial manipulations or the propane industry. AIG under his watch became a dominant propane trader according the FERC reports. Its activities in the propane futures market put it in direct competition with Level Propane, whose price hedging with product futures was essential to its business plan. AIG also was the largest insurer in the propane sector. Level Propane, like many others, was among its customers.
The collusion between those running the Level Bankruptcy and AIG in collecting on a $3MM Directors & Officers policy could only have been possible with Greenberg’s direct authorization. Only he could authorize the renewal of this policy after it had expired and after it was made clear the only reason to seek the renewal, which was a year late and had in fact been back-dated, was to claim its full value to provide additional funding for the scheme initiated in 2000 by John Rudd. The bankruptcy court’s approval of the settlement, for the remaining value in the policy, is on appeal.
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