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This has incited furious reactions in the story's comments sections as well as a heap of attention from financial blogs. Indeed, it does sounds like a horror story -- in theaters soon: "AIG II: Return of the Derivative!" -- but in reality, there is to get all puffed up about, particularly when the facts are straight. First, let's be clear: C.V. Starr is not Greenberg's new venture as the article makes it sound; it was incorporated in 1950, according to the firm's Web site. In fact, it was founded by Cornelius Vander Starr. Sound familiar? That's because it is the same chap that started AIG. But C.V. Starr has a long way to go before its the utter mess that is AIG. And let's face it: at 86 years old, Greenberg won't have anything to do with that. The sordid history between AIG and C.V. Starr, though, does deserve some attention. The two firms have been intertwined for decades, even sharing office space at certain points. But in 2006, after a recently ousted Greenberg joined big brother C.V. Starr, the firm terminated its "agency" relationship with AIG. Since then, the two have been in something of a turf war. That war has always been at least partially personnel (get it?). In 2006, among a spate of other law suits that covered trademark issues, etc., C.V. Starr accused AIG of poaching its employees and stealing trade secrets. The two companies are closely linked, their employees are familiar with each other, and they operate in the same sector, so of course employees are going to leap back and forth (though more forth, given pay czar Kenneth Feinberg's recent compensation proclamations). As far as C.V. Starr impairing AIG's ability to pay back TARP money goes, these two companies are absolutely in competition. And, yes, as C.V. Starr expands, it could put a dent in AIG's business, and thus, its loan repayment. But for Starr to take it easy on AIG would be like nursing the bully because he broke his arm beating you up for not wanting to be his friend anymore. Or more clearly, as NYT commenter Marcy R. in Tulsa, writes: "This article accused Mr. Greenberg of engaging in capitalism. Since when has that been illegal in our country? So what if he is hiring ex-employees and other trained personnel from AIG. What employer does not want trained successful people doing the jobs he needs done?" Now, the fact that Greenberg is AIG's second-largest shareholder is the kind of warped spoonerism that would be comical if we -- you and I -- weren't AIG's largest shareholder. - Sara Behunek
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The New York Times on Tuesday 
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