AIG to Weigh Suing US Government For 25 Billion
Posted 14 January 2013 - 11:30 PM
Posted 15 January 2013 - 12:04 AM
Posted 16 January 2013 - 04:46 PM
Luckily the government has the power to just say "no you can't sue us." If this doesn't happen we better start looking into why.
Actually they don't in this case. In fact, the feds tried to get a federal judge to dismiss the case, but he wouldn't. In failing to dismiss the suit, Judge Wheeler said that if the government is demanding something it has no right to demand, then it would have been an illegal exaction, even if the leaders of AIG decided to go along.
AIG decided (correctly) not to join the suit, but it will be interesting to see how all this plays out. Did the government have a right to force the deal without the approval of the owners, ie shareholders. And did the government seize private property without paying the proper value for it?
Posted 16 January 2013 - 06:57 PM