Hank Greenberg : What’s Hurting BofA is Their “Mortgage Portfolio”

Former American International Group (AIG) CEO Hank Greenberg spoke with FOX Business Network’s Neil Cavuto about Moody’s (MCO) downgrading Bank of America and his support for Governor Rick Perry (R-TX). Greenberg addressed the downgrade, saying, “What’s hurting Bank of America is their mortgage portfolio. Mortgage portfolios are not going to improve until there’s jobs.” He also discussed why he supports Gov. Perry and said, “Here’s a man that understands business creates jobs.” Excerpts from the interview can be found below, courtesy of Fox Business Network.

On Moody’s downgrading Bank of America:
“What’s hurting Bank of America is their mortgage portfolio. Mortgage portfolios are not going to improve until there’s jobs. People that don’t have jobs can’t pay mortgages. It’s not very complicated. They have access to the Fed window for liquidity, not for capital.”

On why he supports Governor Rick Perry (R-TX):
“I’ve known him for a long time. I will give you an example. When I was buying American General Insurance Company located in Texas, we had to get papers in on a Friday at a certain time. The insurance department said ‘we close very early on a Friday.’ I called the governor and he said they’ll be open all weekend. If I called any other state, you wouldn’t get the governor and if I called Washington I’d get the cleaner. Here’s a man that understands business creates jobs.”

On if GOP presidential candidate Mitt Romney understands that business creates jobs:
“I’m not saying he doesn’t but I know that Rick Perry does. I’m not saying Romney is a bad candidate but I’m saying Perry is a stronger candidate.”

On Gov. Perry calling Social Security a Ponzi scheme:
“You gotta look beyond a word like that. Look at the substance of the man.”

On what should be done to help fix the economy:
“We need a jobs program, a tax program that will encourage people to invest. The uncertainty that currently exists keeps money on the sidelines. The uncertainty kills the market. We need infrastructure, but by the time you get it through regulators, even if you get foreign money to be invested here, years go by. It’s not something that can happen overnight; we have to change that. We have to have a sense of urgency, tax certainty.”

On the AIG bailout:
“That bailout never should have taken place and the way it did take place was wrong. AIG was used as a back door bailout for many others.”

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