more developments now in this long-running fight between two heavyweights, former aig chief hank greenbergtorney general eric schneiderman. charlie gasparino, new exclusive details involving a judge. >> we should point out that when we were reporting that greenberg was making some moves that suggest he might want to settle this case, guess what happened hours after we said that last week? the judge, judge charles ramos, refused to dismiss the case against greenberg. it was a motion that greenberg's attorney put up there to dismiss the aig case involving the allegedly fraudulent accounting in 2005 that forced greenberg from aig. that case is still being taught now. three attorney generals later by eric schneiderman. and here's what's really interesting. since hank could not get this case dismissed, what we understand inside schneiderman's office that they are planning to take greenberg's deposition when this thing goes to trial. it's going to be an amazing scene when hank greenberg goes be up there and puts his happened on a bible and says, and swears to tell the truth, the whole truth and

in recent weeks hank greenberg has had a democratic operative, the head of his p.r. he has outed his old head of p.r. schwartz sparred over the approach to this snyderman case. he is an attack dog, definitely going from an attack dog to a gentler approach. a guy with a softer hand. if you want to fight like hell, you hire him. if you want a softer touch, you go to steve. that is what has everybody talking. listen, in a battle like this, what are you going to do, play nice? this is what has people talking. going from arthur, and attack dog. a lot of people are talking but a settlement. i was just informed by greenberg's office, there is no settlement, they want to go to trial. i will say this. he handles a lot of stuff for hank including his lawsuit against the federal government involving the legality of the aig bailout. that is a huge case. you don't get the impression is a big-time democrat really wants to bring this case on aig where schneiderman was kind of left with it. most of the case was thrown out. he dropped all the monetary damages. all he is looking for i

you would think hank greenberg never wants to settle. melissa: feels like it. it has been going on forever? >> fox business has confirmed there had been settlement talks over the past year at least twice between representatives greenburg and attorney general eric schneiderman's office. this is a case, as you know dated back when spitter was attorney general and hank was running aig. it was a accounting irregularities. lots of the case has been thrown out. this is where the talks break down over potential fines and schneiderman's push to get hank be barred from the business. here is an interesting thing which has got a lot of people talking. hank greenburg has gotten rid of his long-time pr guy. he was a thorn in the side of schneiderman for a while. was republican. came back and hired a dig-time democratic operative. a lot of people think this is beginning possibly an olive branch to schneiderman. melissa: the reason why people out there would be interested in this is that it tells you what kind of a fighter the attorney general is. >> and greenberg. melissa: a

. >> and how upset hank greenberg is at aig, that they had to make the likes of goldman sachs whole. d this at the time and i distinctly remember hank paulsen being very nervous, depending on your world view, being a scaremonger saying the markets are going to fall 1,000 points on monday. this is when bear stearns was collapsing, six months before the lehman event. anyway, there's a lot of interesting post-game analysis. >> the problem is not that we bailed out the bankers, but it's very hard to get a home mortgage, so that's why it doesn't appear to be equal support or equal treatment as we come out the other end of this. i don't dispute what happened but i sure can see why people would say it didn't really help me. >> quick last word to you, noemi. if you were saying the next time around we're facing a crisis like this, because a lot of people have attacked this from a top level point of view and bank capital levels and so on. what is the way then to be more effectively target homeowners, again knowing the kind of outrage there would be at the time if those who had been whole on the