AIG Board Won’t Sue Government Over Terms Of Rescue

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AIG Board Won’t Sue Over Terms Of Rescue

American International Group Inc. decided Wednesday to pass on a shareholder lawsuit that accuses the U.S. government of unfairly burdening the company during its financial-crisis rescue, in a move that could snuff out a brewing controversy for the insurer.

The insurer’s directors unanimously rejected any participation in the suit, partly to avoid reputational harm that they feared could result from signing on, according to a person familiar with the company.

“The Board’s decision today was about continuing to move this company forward, not backward,” said Chief Executive Robert Benmosche in a memo to employees.

The suit is being pursued by AIG’s former leader, 87-year-old Maurice R. “Hank” Greenberg, through a company he now leads that once was a large AIG shareholder, Starr International Co. The suit contends the U.S. government extracted too-onerous terms in its rescue package for AIG, and seeks about $25 billion from the government. A federal claims court in Washington ruled in July that the case could proceed, after the U.S. government sought to dismiss it.

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Comments
3 Responses to “AIG Board Won’t Sue Government Over Terms Of Rescue”
  1. TheHutMaster says:

    Your kidding me, right?
    PHUCK AIG, and the FRAUD they rode in on.

    “Fight the Good Fight”
    Every Minute, Every Day

  2. bobbi swann says:

    I just don’t understand these people at all! These shareholders or investors are comprised of people, mostly American, I would guess. At any rate, they are paying taxes just like everyone else. A win for them in court against the ‘government’ is simply putting more burden on taxpayers as they/we are the ones who end up footing the bill. The government doesn’t have any money! The government is broke! Any monies come from taxpayers so who ends up paying the bill in a government suit??? They are just stabbing themselves in the back. Stupid, stupid, stupid. No one takes the fiscal cliff seriously and if you think some piece of paper signed at the last minute is a cureall or will stop the government from busting, well, have I got news for you. We are on the brink of a collapse, teetering at the edge and if we don’t stop spending more than we have we will turn into one of those European countries of ‘no return’. Look what happened to Argentina and we are a mirror of what was happening there before they collapsed. WAKE UP!

  3. 1ofthemany says:

    AIG needs to bury itself and get off the backs of the public

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