Insurance giant AIG (NYSE:AIG) has been in and out of the courtroom for some time now as litigation over its involvement in the financial crisis continues. So it's unlikely for the company to be happy with a New York attorney general, but AIG may just be ready to give a round of applause -- even if it's just a golf clap.
The New York attorney general is making some remarkable moves so that it can proceed with an eight-year-old case against AIG's former CEO, Hank Greenberg. In order to have a public trial where Greenberg takes the stand to defend himself against fraud allegations, Eric Schneiderman is forgoing the state's right to contest a $115 million settlement already agreed to by Greenberg, as well as pursuit of $6 billion in cash damages from Greenberg and former AIG CFO Howard Smith. The move would allow the trial to continue, with the ultimate punishment for Greenberg resulting in the possibility of a ban from working in the securities industry or acting as director or executive of a publicly traded company.
In this video, Motely Fool contributor Jessica Alling discusses why this may still be relevant to AIG investors now and what investors should think going forward.