Greenberg Says AIG 'in Crisis'

In a harshly worded letter issued yesterday to the board of directors of AIG, Maurice R. "Hank" Greenberg wrote as its former chief executive but more importantly as its largest single shareholder. "AIG is in crisis," Greenberg wrote, urging the board to postpone its annual meeting.

"I am as concerned as millions of other investors as I watch the deterioration of a great company," wrote Greenberg, who built AIG into the world's largest insurer in his nearly 40 years as chief executives now heads Starr International Co., AIG's largest shareholder.

The insurance behometh last week reported its worst results in 40 years. Over the last twelve months, shareholders of AIG have lost $80 billion in the aggregate.

"Several top shareholders of AIG have called me expressing deep concern about the persistent and seemingly endless destruction of value at AIG.  They, and I, are deeply distressed by the excessive loss of value," Greenberg wrote.

Greenberg reasons that instead of hosting its annual meeting, board members need to take time to digest the losses and strategize on their response. "For this reason and others, a postponement of this week's annual meeting should be considered so that all shareholders can give careful thought to how best to move AIG forward."