Bensinger, Steven J.

Yale University

Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents Browse by Media Type 7-1-2010 Treasurer of AIG, Steven Bensinger Testimony Before the FCIC Steven J. Bensinger Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Bensinger, Steven J., "Treasurer of AIG, Steven Bensinger Testimony Before the FCIC" (2010). YPFS Documents. 5839. https://elischolar.library.yale.edu/ypfs-documents/5839 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. TESTIMONY OF STEVEN J. BENSINGERBEFORE THE FINANCIAL CRISIS INQUIRY COMMISSIONTo Chairman Angelides, Vice Chairman Thomas, and distinguished members of theCommission: As requested in the Commission’s letter to me of June 15, 2010, I respectfullysubmit the written testimony below for consideration by the Commission.My name is Steven J. Bensinger. I appreciate the opportunity to testify before theCommission today. I would like to begin by briefly discussing my background. I will thendiscuss my tenure as chief financial officer of AIG.I graduated from New York University with a double major in accounting and computerapplications and information systems in 1976. I then joined Coopers & Lybrand, becoming apartner in 1985. While at Coopers & Lybrand, I focused on the property and casualty insuranceindustry. It was through my work at Coopers & Lybrand that I became involved with AIG,which was a client of Coopers & Lybrand. After about 11 years at Coopers & Lybrand, I leftthat firm to become the chief financial officer of a property and casualty reinsurance company,which had also been a client of Coopers & Lybrand. After five years with that firm, I left andheld senior positions at several other insurers and reinsurers until I joined AIG in the fall of2002.Upon joining in 2002, I became the treasurer of AIG. In that role, my primaryresponsibilities were overseeing the rating agency relationships, monitoring cash flows, andbecoming involved in the Company’s financings, as necessary. I had no financial reportingresponsibilities in that position. I remained in that role until 2005.2Beginning in 2004, AIG became the subject of investigations by various authorities inconnection with certain reinsurance transactions. In addition, AIG and other insurancecompanies were subject to an investigation into, among other things, bid-rigging and contingentcommissions claims by New York’s then-Attorney General Eliot Spitzer.In late 2004, in the midst of these investigations, Howard Smith, AIG’s CFO at the time,and Hank Greenberg, AIG’s then CEO, discussed with me the possibility of my becomingcomptroller of AIG. Unlike the treasurer position, the role of the comptroller includedresponsibility as the Company’s chief accounting officer, and particularly included responsibilityfor overseeing the preparation of AIG’s SEC filings. In January of 2005, I became comptrollerof AIG, while also continuing as treasurer.As the investigations developed, however, a decision was made by the AIG board toreplace Mr. Smith as CFO. Thus, in March of 2005, before AIG’s 2004 10-K was filed, I wasasked by the AIG board to take over Mr. Smith’s job as CFO of AIG. Martin Sullivan was alsoasked at that time to replace Mr. Greenberg as CEO of AIG.Although I knew that I was stepping into an extremely complex and highly pressuredenvironment in light of the challenges and investigations that AIG was then facing, I acceptedthe job as CFO. Thereafter, I helped lead a thorough investigation of the Company’s financialaccounting and control environment, which resulted in a restatement of AIG’s prior years’financial statements in May of 2005.During the course of the closing of the September 30, 2007 quarterly financialstatements, I became aware of certain collateral calls that had been made by counterparties.3Along with company management expert in these areas, and also including the Company’soutside auditors, I attempted to ensure that the valuation and disclosure around AIG FinancialProduct’s super senior CDS portfolio was appropriate given the information available to theCompany at the time. We continued to update our valuations and disclosures in ensuing periodsas market conditions continued to deteriorate.I continued to serve as AIG’s CFO until October 2008, when I left the Company. Withthat background, I stand ready to answer any questions the Commission may have concerningmy tenure at AIG.

Treasurer of AIG, Steven Bensinger Testimony Before the FCIC

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Treasurer of AIG, Steven Bensinger Testimony Before the FCIC

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