I am starting to have serious doubts whether New York’s crusading attorney general, Eliot Spitzer, will ever lay a glove on Maurice Greenberg.
This week, Mr. Spitzer’s office announced that a number of charges were being dropped (click here for the full story) in the civil case against AIG’s former chairman and CEO. (Did you ever notice that whenever there is “good” news, Mr. Spitzer announces it himself, while it is his “Office” that speaks when the news ain’t so good?)
Both sides were spinning heavily, with Mr. Greenberg’s legal team hinting that the game was now pretty much over, while Mr. Spitzer’s office insisted that “the core of our case remains.” They are probably both right, to a point.
But regardless of what charges remain—regardless of even whether Mr. Greenberg is guilty or innocent—I think the odds have shifted heavily over to Mr. Greenberg.
For one, Mr. Spitzer is on his way out the door as he prepares to be anointed governor of New York come Election Day. Those running to succeed him—lightweights such as Mark Green and Andrew Cuomo—have neither the killer instinct nor staying power of Mr. Spitzer. I doubt either will want to pick up Mr. Spitzer’s hand-me-down cases—especially one likely to take years to conclude--and waste their limited resources in the process.
For another, Mr. Greenberg has nothing to lose and everything to gain by going head to head with the AG’s Office. Mr. Spitzer’s tendency to try people and their companies in the press has already cost Mr. Greenberg what he valued most—his position at AIG. Now, he has all the time, money and legal talent in the world to defend himself against those charges that haven’t already been dropped—as well as to vindicate himself and clear his name.
While the Enron case demonstrated that average people are capable of sitting through the most esoteric of subject matters during a trial, I still think the AG’s office is going to have a heck of a time convincing jurors about the evils of finite reinsurance. And I am not sure they are even going to try.
How do you folks think this will all come out?
Comments (4)
I think Mr Greenberg will eventually get some kind of deal. Mr. Spitzer seems to like to drag these cases out, then arrive at some kind of deal, which includes a fine.
Posted by David Voteau | September 8, 2006 12:58 PM
Posted on September 8, 2006 12:58
Today's Wall St. Journal editorial is quite disparaging of Mr. Spitzer and concludes that the "core of his case" is indeed finished.
Posted by Philip Lieberman | September 8, 2006 2:36 PM
Posted on September 8, 2006 14:36
For those of you who did not see today's Wall Street Journal, or who do not have a paid subscription to their Web service, the editorial mentioned by the preceeding reader, headlined "Spitzer's Retreat," said "Here ends a monumental story of prosecutorial abuse."
The WSJ said that when AIG decided to settle with Mr. Spitzer, "Mr. Greenberg refused to roll over," and that now "the prosecutor has in fact abandoned nearly every substantive claim he'd made against the insurance titan--claims that helped lose Mr. Greenberg his job."
After bashing Mr. Spitzer in a few subsequent paragraphs, the editorial concludes by saying that:
"Not that any of this matters to Mr. Spitzer now. Surfing along on a wave of prosecutorial "triumphs"--of which the Greenberg case was feted as one of those most significant--he is cruising toward the governor's mansion. It's getting harder to believe that many of his suits weren't brought solely for that purpose."
Any comments?
Posted by Sam Friedman | September 8, 2006 5:20 PM
Posted on September 8, 2006 17:20
I agree with you on this one, Sam.
Mr. Spitzer can continue on his merry way to the governor's mansion. Hank Greenberg may have stepped down, put not out.
My grandmother always said, "He who laughs last, laughs loudest!" If I were Mr. Spitzer, I'd stay away from dark alleys and keep an eye over my shoulder at all times!
Posted by Peter | October 4, 2006 1:41 PM
Posted on October 4, 2006 13:41