Ex-CEO Greenberg defends AIG fund actions

Greenberg took control of the fund and then sold tens of millions of AIG shares held in it because he was angry about being ousted, AIG's lawyer Wells said in his opening argument on Monday.

But David Boies, a lawyer representing Starr International, said AIG has repeatedly admitted in the past that Starr was the beneficial owner of the stock.

"They said it internally, they said it externally," he said, showing the jury letters and clips of past testimony from AIG officials.

Furthermore, Boies said, documents show that the trust was not only intended to provide retirement bonuses for AIG employees, but also to finance new projects. The wealth generated, he said, was intended to ultimately go to a charity foundation run by Starr.

It is "wrong" and "outrageous" for AIG to try to grab the shares back from Starr, and Greenberg was not trying to take the stock for himself, Boies said.

"He isn't a bad man," Boies said.

AIG said if it is able to reclaim the $4.3 billion from Starr, the money would help the troubled financial services company repay the government. The government has recently provided AIG with $182 billion in support because of fears that a collapse of AIG would trigger hundreds of billions of dollars in losses at financial institutions worldwide.


