BUSINESS
05/03/2009 05:12 am ET Updated May 25, 2011

Hank Greenberg: AIG Should Return Money

April 2 (Bloomberg) -- Banks that benefited from the bailout of American International Group Inc. should return some of the cash the firms got in exchange for stakes in a recapitalized insurer, said former Chief Executive Officer Maurice "Hank" Greenberg.

The U.S. rescue of AIG, which has been revised three times since September and ballooned to $182.5 billion, is a "failed approach" that can be replaced by using private capital, Greenberg said in prepared testimony to lawmakers. Goldman Sachs Group Inc., Societe Generale SA and Deutsche Bank AG led banks that got about $50 billion from New York-based AIG last year amid its rescue to retire credit-default swaps.

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