Fired AIG finance chief Smith resigns director post
(Bloomberg) ? Howard Smith, who was fired as chief financial officer of American International Group Inc. amid an accounting probe, has resigned his remaining post as director of the insurer?s board.
Smith, 60, stepped down in a June 7 letter, AIG, said in a regulatory filing. Smith has not participated in meetings since being fired in March, AIG spokesman Chris Winans said. The company?s annual report said it did not expect to nominate Smith for re-election at this year?s annual meeting.
AIG, the world?s largest insurer, fired Smith shortly after forcing Maurice ?Hank? Greenberg to resign as chief executive officer. The departures were triggered by New York Attorney General Eliot Spitzer, who began investigating a type of reinsurance that insurers may abuse to smooth earnings or mask losses. Spitzer has since sued Smith, Greenberg and AIG amid a $3.9 billion earnings restatement correcting improper accounting.
Greenberg, 80, also resigned from the board last week. A June 8 letter to the board said he was stepping down because he hadn?t been getting information about the company?s business.
AIG?s Winans declined to comment on the resignation. Smith?s attorney, Andrew Lawler, didn?t immediately return a phone call seeking comment. Lawler previously said that Smith intends to contest Spitzer?s charges.
Shares of New York-based AIG fell 46 cents to $55.09 in New York Stock Exchange composite trading. The stock has fallen 25 percent since it announced subpoenas on February 14.