AIG may join bailout suit against U.S. government
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(Reuters) — American International Group Inc., the insurer rescued by the U.S. government in 2008 with a bailout that ultimately totaled $182 billion, may join a lawsuit against the government alleging the terms of the deal were unfair.
The company confirmed a New York Times report that said AIG's board would meet Wednesday to discuss joining a lawsuit filed against the government by the insurer's former chief executive, Maurice R. Greenberg.
The move would be something of a shock development, given that AIG just launched a high-profile TV ad campaign called "Thank you America," in which it offers gratitude for the rescue, which was fully repaid with a profit last year.
At the same time, CEO Bob Benmosche has complained publicly that the company and its management have not gotten enough credit for avoiding a collapse, turning the business around and returning to profitability.
Mr. Greenberg, whose Starr International Co. Inc. owned 12% of AIG before its near-collapse, has accused the Federal Reserve Bank of New York of using the rescue to bail out Wall Street banks at the expense of shareholders, and of being a "loan shark" by charging exorbitant interest on the initial loan.
A federal judge in Manhattan dismissed Mr. Greenberg's suit against the New York Fed in November; a separate suit under different legal theories in the U.S. Court of Federal Claims is still pending.
An AIG spokesman declined to comment beyond confirming that the board would meet.
