AIG May Join Bailout Suit Against U.S. Government

[MilesColtrane]

Those sons-of-bitches...

We need to nationalize AIG, fire it's executives, then break it up into smaller companies.

Quote:Tue Jan 8, 2013 9:43am EST
(Reuters) - American International Group Inc, the insurer rescued by the U.S. government in 2008 with a bailout that ultimately totaled $182 billion, may now join a lawsuit against the government alleging the terms of the deal were unfair.

The news prompted a swift reaction from one of AIG's rescuers, with the Federal Reserve Bank of New York saying the insurer could have just as well chosen bankruptcy four years ago and wiped shareholders out entirely.

The move would be something of a shock development given that AIG just launched a high-profile television ad campaign called "Thank you, America," in which it offers the public its gratitude for the bailout.

At the same time, Chief Executive Bob Benmosche has complained that the company and its management have not gotten enough credit for avoiding a collapse, turning the business around and returning to profitability.

More:

http://www.reuters.com/article/2013/01/0...GR20130108

[Peacetrain]

I heard that this morning and almost dropped my coffee.. they almost bankrupted the world.. the US goverment saves their hash and those of all the other banks (after all this was their insurer) and now they have the unmitigated gall to even try such a stunt.. steam coming out of my ears..you bet

[NJMaverick]

I hear that suit that AIG would be joining was brought forth by the insurer's former chief executive, Maurice "Hank" Greenberg. If that name sounds familiar it's because he has been using high priced lawyers to fight charges of fraud and other criminal activity. What shocks me is our legal system is so screwed up, that this suit (a similar suit was already tossed, thankfully) is still going through the courts.

[sandnsea]

OMG - check this out. They're accusing the US govenment "of being a "loan shark" by charging exorbitant interest of 14.5 percent on the initial loan."

Are you kidding me? What was it when mortgage companies jacked up interest rates to that level? What is it when credit card companies charge 25%?

These people need to be sentenced to ten years of budget management for working people.

[PoliticalTiger]

As Bill Clinton might say, it takes some brass to even consider doing that!

[Born_A_Truman]

No good deed goes unpunished.

[There Is No Spoon]

These ingrates are begging to be tarred and feathered.

[Fire1]

Doesn't the gov't own 80% of AIG?

[pappy]

(01-08-2013 09:30 PM)Fire1 Wrote:  Doesn't the gov't own 80% of AIG?

Not anymore.

From UPI

Quote: Published: March. 22, 2012 at 6:02 PM

WASHINGTON, March 22 (UPI) -- American International Group, given $182 billion in bailout funds, has repaid in full the U.S. Treasury's preferred equity investment, the department said.

With a payment of $1.5 billion made Thursday, AIG has reached that repayment goal a year of ahead of schedule, the department said in a statement.

That leaves the Treasury -- or, one could say, U.S. taxpayers -- with $45 billion invested in the firm, "which represents more than 75 percent reduction from that original commitment," the department said.

The Treasury Department currently holds 1.248 billion shares of AIG common stock, 70 percent of the firm's outstanding common stock, which is valued at $35.7 billion.

[Brewman_Jax]

Have they no shame?

[SeattleGirl]

Just heard that the board at AIG voted to NOT join the suit.

[There Is No Spoon]

(01-09-2013 06:14 PM)SeattleGirl Wrote:  Just heard that the board at AIG voted to NOT join the suit.

Yeah, I read that too. Think the public outrage had anything to do with it?

Actually, I think this was leaked as an idea to see what the reaction would be.

[MilesColtrane]

(01-09-2013 06:14 PM)SeattleGirl Wrote:  Just heard that the board at AIG voted to NOT join the suit.

...and another trial balloon goes SSSSssss.ssss...

[janedrake]

I'd heard from a lawyer-type that the Board largely chose to consider this dumb idea in order to provide themselves legal cover, shareholder-wise. Glad they collectively didn't lose their damn minds and that they voted it down.