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The items, along with hundreds of other personal effects, were left behind in Mr Greenberg’s Lower Manhattan offices when he was ousted from AIG in March. But when he sent removers to collect the articles last week, AIG lawyers turned them away.
Mr Greenberg, who turned 80 yesterday, is understood to be furious and has threatened legal action against AIG to retrieve his belongings, which include a Remington sculpture, letters from his mother during his service in the Second World War and the Korean War, photographs of himself being awarded the Bronze Star, cards from heads of state, and his underwear.
Mr Greenberg was said to have become concerned about his belongings when he learnt that AIG lawyers were taking an inventory, and telephoned his handpicked replacement, Martin Sullivan. The new chief executive is understood to have assured him that he could collect the items. The range of personal effects that Mr Greenberg kept in his office reveals how deeply entrenched he was at the company he built over four decades.
“He didn’t draw a clear line between the company and him,” Professor John Coffee, a white-collar crime expert at Columbia University, said.
There is no suggestion that Mr Greenberg bought the items with company money but AIG lawyers are reluctant to allow any of his possessions to leave the building until an investigation into AIG’s accounting practices is complete.
This week the insurer implicated Mr Greenberg in some questionable accounting activities, saying that senior executives had been able to “circumvent” internal accounting controls. In an 11-page report, AIG said newly uncovered discrepancies in its accounts would reduce the insurance giant’s book value by $2.7 billion (£1.4 billion).
Mr Greenberg’s lawyers have complained bitterly that they have not been given an opportunity to view the report. David Bois, his lead attorney, took issue with AIG’s argument that there were inadequate financial controls at AIG, which he said “is at odds with the good faith efforts of the board, AIG’s auditors, and the company’s senior management”.
Investigators are also said to be examining a stock award of 15,000 AIG shares from Mr Greenberg to Henry Kissinger in the 1990s. The award was made to thank Mr Kissinger, the former US Secretary of State, for his advisory services. Such payments are not unusual and the award, which could have helped AIG to form business relationships overseas, may not be contentious.
From Van Gogh to underwear
The items Greenberg is hoping to recover
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