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AIG to Weigh Suing US Government For 25 Billion

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Posted

WASHINGTON: AIG said Tuesday that it would consider suing the US over the government's massive $182 billion takeover and bailout of the insurer more than four years ago.

American International Group Inc. said its board would weigh on Wednesday a push by its former chief executive to take the lead in a shareholder suit challenging the legality of the September 2008 rescue.

The former CEO and founder of AIG, Maurice "Hank" Greenberg, sued the government for $25 billion in November 2011 through his company Starr International for taking control of nearly 80 percent of AIG without fairly compensating shareholders.

The government moved to take over AIG to prevent its imminent collapse from sparking a snowball of gigantic failures throughout the global financial system.

At the time, AIG was the world's largest insurer and had exposed itself with massive insurance contracts with banks and other investors tied to the collapsing credit derivatives market http://www.channelnewsasia.com/stories/afp_world_business/view/1246829/1/.html

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Posted

From Senator Elizabeth Warren:

“Beginning in 2008, the federal government poured billions of dollars into AIG to save it from bankruptcy. AIG’s reckless bets nearly crashed our entire economy. Taxpayers across this country saved AIG from ruin, and it would be outrageous for this company to turn around and sue the federal government because they think the deal wasn’t generous enough. Even today, the government provides an ongoing, stealth bailout, propping up AIG with special tax breaks—tax breaks that Congress should stop. AIG should thank American taxpayers for their help, not bite the hand that fed them for helping them out in a crisis.“

Read more: http://www.businessi...1#ixzz2HSGnk0rf

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Posted

This is why the company should be destroyed.. If there was a way to keep the pensions n such afloat.

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Posted

How bout you give that money to the people you've been ripping off and f'ing over for the last however many years. Fug you AIG. The gov't doesn't owe you anything.

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Posted

Freddie and fannie is just as bad.

Also. Why was the debt relief act created in 2007 if nobody in congress knew the financial mess was coming?

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Posted

Should have let it fail, same with GM, and Freddie/Fannie.

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Posted

It's easy to say let gm fail when you don't have family a friends living in Michigan or other locations with large amounts of gm employees.

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Posted

Every company has employees and sad faces.

Why should one be any more important than another. Government should not be in the business of picking winners/losers.

So it is pretty easy to say.

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Posted

Every company has employees and sad faces.

Why should one be any more important than another. Government should not be in the business of picking winners/losers.

So it is pretty easy to say.

because some companies ARE more important than others in terms of economic stability.

this is capitalism, you may not think it's fair or some stupid shiat... but it's necessary. Trust me, I hate it more than you... but do you honsetly believe that this country would be in better shape if we'd let the largest insurer, the largest auto manufacturer and the largest bank in this country go under?

Remember Katrina? Those were ALL AIG policies. Shall we just abandon the gulf because of AIG? Should we allow AIG to default on all those policies? Shall we abandon all practical interference and let the market devour itself while smugly patting ourselves on the back for our adherence to our ideals? Rigidity is death.

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Posted

At least break them up. Too Big to fail indeed...should never really get like that.

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Posted

At least break them up. Too Big to fail indeed...should never really get like that.

agree with this completely.

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Posted

i have always said round one of TARP etc, HAD to happen. the sheer scope and size of the fallout by just letting them fall would have been apocalyptic.

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