The Insurance Industry scandal, the Greenbergs, and the law of Karma

[burythehatchet]

http://www.forbes.com/business/energy/feeds/ap/2004/10/19/ap1597298.html

You may be aware of the multi-billion dollar bid-rigging scandal that Eliot Spitzer, my hero, is exposing.

I've worked in this business for 20 years and it has been interesting to reflect on what is happening and who is involved. I won't get into the details of the activiries that led to the investigation, but I do find it curious that three members of one family head up the three large firms at the center of the scandal. Maurice Greenberg heads up AIG, his son Jeff Greenberg heads up Marsh, and his son Evan heads up ACE.

As a side note, Maurice Greenberg, the patriarch of the insurance industry, was also mentioned as a possible director of the CIA in the 80's.

I have no personal axe to grind with any of these people, but it is remarkable how some people have the ability to steal so much from so many, and do it with impugnity.

May they all receive their just rewards.

[donkeyotay]

1. What an interesting fact!

"three members of one family head up the three large firms at the center of the scandal. Maurice Greenberg heads up AIG, his son Jeff Greenberg heads up Marsh, and his son Evan heads up ACE.

I think this nation is falling under the weight of corruption. We don't need terrorists, we're self-destructing. Companies and entire industries have been taken over, and the rule of law apparently doesn't extend to everyone.

One investigator asked "What I'd be more interested in hearing is how they (the insurance companies) plan to rebuild trust and confidence with their clients."

The government needs to start asking itself the same question regarding its citizens.

[donkeyotay]

2. funny how publically traded companies are run by families

and the shareholders and pension funds that represent the average person get taken along for the ride. Like Sinclair Broadcasting, for instance. Turns out that according to SEC filings as of 1/8/04 40% of stock was held by a goup consisting of Frederick G. Smith, Duncan J. Smith and Robert E. Smith. That apparently doesn't include (?) the 25% that David D. Smith (President) controlled as of 3/29/04.

A recent bush meme was going to be that we were the "ownership society." But apparently, some of us are more equal than others in the "ownership society." I think it must be bush's base of the "haves and have mores" that actually run our free markets.

[burythehatchet]

3. This I believe is why the thugs are railing against

"trial lawyers". Like everything else, they do not want the people to have equal access. They get more bold by the day.

[Eloriel]

4. Right on, good point

And I too wasn't aware of the "monopoly" of one family on the insurance industry.

:kick: