CASE 439 - Marsh and Mclennan

Marsh & McLennan Companies, Inc. is a U.S. multinational professional services, risk management, and insurance brokerage firm with headquarters in New York was World trade centre floors from 93 to 100 control room and main offices and 295 employees there were killed on 911.

In 2012, it had approximately 54,000 employees and recorded an annual revenue of $11.9 billion. In 2013, Marsh & McLennan Companies was ranked the 228th largest corporation in the United States by the 2013 Fortune 500 list, and the 5th largest U.S. company in the diversified financial industry. Marsh & McLennan Companies was also ranked 29th on the 2012 Bloomberg Businessweek 50, the magazine's annual ranking of the S&P 500's top 50 performing companies.

On October 11, 2001, Marsh established a crisis consulting practice specializing in terrorism, with Ambassador L. Paul Bremer as Chairman and Andrew R. Daniels as President and COO. Marsh also announced a partnership with Control Risks Group to provide political risk assessment.

On July 8, 2004, Marsh completed the acquisition of Kroll Inc.[8] Jeffrey W. Greenberg called it an important strategic step. The company had employed terrorism expert John O'Neill, formerly of the Federal Bureau of Investigation.

On October 14, 2004, New York State Attorney General Eliot Spitzer announced the initiation of a civil action against Marsh, alleging impropriety in the steering of clients to insurers with whom the company maintained payoff agreements, and for soliciting rigged bids for insurance contracts from the insurers. The Attorney General announced that two AIG executives pleaded guilty to criminal charges in connection with this illegal course of conduct and stated, "There is simply no responsible argument for a system that rigs bids, stifles competition and cheats customers." Former CEO Jeffrey W. Greenberg resigned several weeks later. The suit was ultimately settled out of court.

On January 31, 2005, Marsh & Mclennan agreed on an $850-million settlement for its bid-rigging practices.

In July 2007, Marsh & McLennan Cos. Inc. was ranked first in Business Insurance's world's largest brokers list.

On September 14, 2007, Brian M. Storms, the CEO of Marsh's insurance brokerage unit, resigned. As Michael G. Cherkasky explained his departure, "we now need a different set of leadership and operational skills".

AIG, the world’s largest insurance company, and subsidiaries Marsh McLennan, ACE and Kroll, were run by the Greenberg family. With Council on Foreign Relations (CFR) member Maurice “Hank” Greenberg as the AIG godfather, the Familia’s tentacles curled around the heart of the tragedy. Hank’s son Jeffrey, a CFR member as well, was chairman of Marsh & McLennan, situated on floors throughout the North Tower of the World Trade Center as well as the top floors of the South Tower. Marsh also had ties to the CIA. Son Evan Greenberg, a CFR member, was CEO of ACE Limited, situated in Tower 7, which also contained AIG subsidiary Kroll, closely related to the CIA, also with an office in Tower 7. Tower 7 also contained offices of the FBI, Department of Defense, IRS (which contained prodigious amounts of corporate tax fraud corporate, including Enron’s), US Secret Service, Securities & Exchange Commission (with more stock fraud records), and Citibank’s Salomon Smith Barney, the Mayor’s Office of Emergency Management and many other financial institutions.