American International Group Inc, the insurer rescued by the U.S. government in 2008, drew angry condemnation from lawmakers on Tuesday after saying it may join a lawsuit that alleges the bailout terms were unfair.
A leading congressional Democrat called criticism of the deal's terms "utterly ridiculous," and former New York Attorney General Eliot Spitzer - who probed AIG when he was in office - called the prospect of a suit "insulting to the public."
The White House declined to comment on the potential for a lawsuit but defended the $182 billion bailout.
Meanwhile, newly elected Senator Elizabeth Warren, feared by Wall Street as a potential thorn in its side on the Senate Banking Committee, called the suit talk "outrageous" and said the company should not "bite the hand that fed them for helping them out in a crisis."
The move would be something of a shock, 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. On Tuesday, the company promoted the ads on Twitter, even as it came under fire over the lawsuit.
Securities experts said AIG's board needs to consider the matter as part of its fiduciary duty, but also said it was unlikely they will actually join.
AIG said its board would meet Wednesday to discuss joining a lawsuit filed against the government by the insurer's former chief executive, Maurice "Hank" Greenberg.
Greenberg, whose Starr International owned 12 percent of AIG before its near-collapse, has accused the New York Fed 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 of 14.5 percent on the initial loan.
"If AIG enters this suit it would be the equivalent of a patient suing their doctor for saving their life," said Mark Williams, a former Federal Reserve bank examiner who teaches in the finance department at Boston University.
Welfare in America: where corporate whores on the dole are bitching about while you save their companies from bankruptcy for free. To be fair, though, I understand them: they already had enough money to live comfortably the rest of their lives, and then that Obama asshole helps them stay in the game. Shameful.
(Reuters) - American International Group Inc will not join a lawsuit against the U.S. government over the terms of the insurer's 2008 bailout, the company said on Wednesday.
In a statement, AIG said it expected to file a formal statement explaining its decision in coming weeks with the courts hearing the various cases.
(Reporting by Ben Berkowitz; Editing by Gary Hill)
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Even AIG's CEO (who IIRC is a pretty big Randroid) thinks Greenberg is crazy. That's saying something.
Turns out that a five way cross over between It's Always Sunny in Philadelphia, the Ali G Show, Fargo, Idiocracy and Veep is a lot less funny when you're actually living in it.
