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AIG's (AIG) advertising tagline at the moment may be "Thank you America," but it's board will...
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Tuesday, January 8, 3:47 AM ETAIG's (AIG) advertising tagline at the moment may be "Thank you America," but it's board will today consider joining a $25B lawsuit that's being led by former CEO and major investor Maurice Greenberg against the government. The suit argues that the heavy demands of AIG's rescue, such as the government taking a 92% stake and the high interest rate rates levied, deprived shareholders of tens of billions of dollars and violated the Fifth Amendment.
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This news story has 25 comments:
The terms were confiscatory, and shareholders did not receive the opportunity to vote on accepting them.
Subsequent bailouts were far more lenient. As a practical matter, officials such as Paulson and Bair exercixed a lot of discretion at the height of the crisis. The whole thing needs to be looked at.
Asset prices did plunge and recover following actions by the Federal government and AIG was a big part of restoring confidence that liquidity wasn't going to collapse but perhaps the govt. would have provided that liquidity in some other way. If that would have happened AIG shareholders likely would have done better. Having said that, those of us who didn't invest in the bubble assets were the ones who really got the short end of the stick.
If they do bring action I hope they slap handcuffs on them ; at the very least judge should give the "plaintiffs" the how many fingers do you see in my hand test.
But AIG (or AIGFP) got themselves into this mess. I find it disgusting that they file a lawsuit.
Sixteen million pages of government documents requested? A fishing expedition of epic proportions!!! Greenberg's fight is with Elliot Spitzer not DC.
That federal judge in NY surely had it right!!!
On taxpayers money, come on, give me a break, please!