The Five Dumbest Things on Wall Street This Week

Hey, Are You Listening? Greenberg says he's ready to share

1. Advise and Consent

You know what the worst thing about this accounting mess at AIG (AIG Quote) is? It's making Hank Greenberg feel like he's being ignored.

New York-based AIG now says it expects to restate earnings to the tune of $2.7 billion. The company this week said it had found deals that took place solely to boost earnings, and fingered a financial setup that let top execs flout internal controls. The problems occurred during Greenberg's nearly 40-year reign as the insurer's iron-fisted CEO.

The announcement came as new CEO Martin Sullivan works with regulators to iron out the kinks in AIG's books. "We now know that there were serious issues with our internal controls, and that it is necessary for us to address those issues and strengthen our controls," Sullivan said. AIG said it will be tardy in filing its annual report.

Greenberg, of course, left AIG in March after investigators started probing his role in a questionable reinsurance deal with General Re. He refused to answer regulators' questions, complaining that the government failed to share documents with his lawyers. AIG's former financial chief, Howard Smith, was fired last month after he also declined to answer questions.

But this week, Greenberg renewed his protest against the "vile accusations" being made. He added that he and Smith really are in a sharing mood -- if only someone would ask.

"AIG's announcement that it is issuing a restatement of its financial statements was made without consulting former management or providing an opportunity for them or their counsel to provide relevant input," Greenberg bridled in a Thursday letter to AIG's board. "How a conclusion can be reached that unsupported 'top level' adjustments allegedly were made, without soliciting information on this subject from the prior chief financial officer or his counsel, is beyond my comprehension."

Maybe someday Hank will comprehend that no one at AIG needs his permission anymore.