Spitzer: Marsh?s Greenberg was uniquely deceptive
(Bloomberg) ? New York Attorney General Eliot Spitzer, who pressured Marsh & McLennan Cos.? chief executive officer to resign after accusing the insurance broker of rigging bids, said executives at other brokers and insurers that he?s investigating haven?t misled or deceived him as Marsh did.
Spitzer sued Marsh in October, citing insurers including, American International Group Inc. and ACE Ltd. as participants in price-fixing that jacked up the cost of insurance.
The attorney general?s refusal to negotiate with former Marsh CEO Jeffrey Greenberg forced his resignation. Greenberg?s replacement, Michael Cherkasky, is now seeking a settlement.
?We have been dealing with AIG, ACE ? a whole range of other companies.
?We have not encountered similar problems,? Spitzer said.
?They have said `What are the problems? How should we dig into them? Let?s resolve them.??
The cooperation Spitzer?s received may signal guilty pleas from five executives at American International, Ace and Zurich Financial Services AG haven?t made the jobs of other CEOs less secure, said Jack Ablin, chief investment officer at Harris Trust & Savings Bank in Chicago. Greenberg?s father, Maurice ?Hank? Greenberg, is CEO of American International, the world?s largest insurer. His brother, Evan, runs Ace.
?Reputation is extremely important and these executives realise this is the course of action that needs to be taken,? said Ablin. ?Denial doesn?t work, as Jeff Greenberg would attest to.?
Harris?s parent, Bank of Montreal, manages $40 billion and held 2.1 million shares of American International and more than 100,000 shares of ACE as of September.
American International rose 62 cents to $65.09 at 11:39 a.m. in New York Stock Exchange composite trading. Ace shares fell 24 cents to $41.46.
Spitzer said he?s trying to work with Marsh and other companies to ensure ?some stability? in the insurance industry.
?We are not trying to unsettle a sector that is hugely important.?