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Former AIG chief sues U.S. for $25 billion [View All]

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IDemo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:00 PM
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Former AIG chief sues U.S. for $25 billion
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By Martha C. White

Former American International Group CEO Maurice "Hank" Greenberg thinks he got a raw deal, and he wants the government to pay up. Greenberg filed a lawsuit in the U.S. Court of Federal Claims asserting that the government bailout and takeover of the insurance giant was an unconstitutional seizure of private property, The Wall Street Journal reported Monday. Greenberg's Starr International Co., which used to be AIG's biggest stakeholder, is seeking $25 billion in damages, based on the value of the 80 percent stake in AIG the government took after providing it with an $182 billion bailout.

Those funds allowed AIG to pay off counterparties like Goldman Sachs in full and reward executives with $165 million in bonuses in 2008, even though AIG lost $61.7 billion in the fourth quarter of that year. This situation raised considerable ire among both the public and investors. AIG's own value plummeted and it was reduced to selling off assets to pay back the government, both moves of which hurt Greenberg's stake in the firm.

An AIG representative declined to comment on the suit via email; the Treasury Department did not respond to a request for comment. The Journal said that the Treasury Department had no immediate comment.

This isn't Greenberg's first legal tussle with the government, and it's not the first time he's clashed with his former company. Greenberg left AIG in 2005 after an accounting fraud investigation was launched by then-Attorney General Eliot Spitzer. The criminal charges didn't stick, but in 2009, Greenberg paid $15 million to the Securities and Exchange Commission for accounting violations. Also in that year, a federal judge ruled that Greenberg was entitled to $4.3 billion in AIG shares the company had sued in an attempt to recover.

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  -Former AIG chief sues U.S. for $25 billion IDemo  Nov-21-11 01:00 PM   #0 
  - A crook screaming, "I've been robbed!"  rfranklin   Nov-21-11 01:06 PM   #1 
  - I don't understand this game. Never will, probably.  freshwest   Nov-21-11 01:14 PM   #3 
  - I'm basically with you, just can't make outlandish claims as repugs always do,  elleng   Nov-21-11 02:22 PM   #14 
     - 'If you can't dazzle them with your intelligence, baffle them with your bullshit,' is  freshwest   Nov-21-11 03:22 PM   #21 
        - Perfect, you got it.  elleng   Nov-21-11 03:33 PM   #22 
  - No Shit and the greedy bastard will probably get it.  dotymed   Nov-21-11 02:09 PM   #13 
  - how do even measure the size of balls that big?  unblock   Nov-21-11 01:13 PM   #2 
  - You have to use the Doppler effect lol.  DocMac   Nov-21-11 01:22 PM   #5 
  - The thing is Greenberg did not go nuts with the credit default swaps  AngryAmish   Nov-21-11 01:53 PM   #12 
  - How much did AIG's shenanigans cost the US economy? $100B? $1T?  baldguy   Nov-21-11 01:18 PM   #4 
  - ...dirt bag.  SoapBox   Nov-21-11 01:25 PM   #6 
  - He should be in jail. n/t  BumRushDaShow   Nov-21-11 01:28 PM   #7 
  - Jeezus H. Krist in a basket. These fuckers are beyond arrogant. Erik, lock his ass up, please. n/t  Scuba   Nov-21-11 01:30 PM   #8 
  - This is why I am an atheist. No god would allow scum like Maurice  plumbob   Nov-21-11 01:33 PM   #9 
  - The audacity of this rat bastard..  Corruption Winz   Nov-21-11 01:37 PM   #10 
  - "Who's Your Daddy Now?"  jtuck004   Nov-21-11 01:50 PM   #11 
  - Holder is the fluffer in chief, second only to the prez.  ooglymoogly   Nov-21-11 02:28 PM   #15 
  - Oh hush ...  Nihil   Nov-22-11 04:07 AM   #23 
  - We should each sue for $1 trillion for the shit we have to put up with.  russspeakeasy   Nov-21-11 02:29 PM   #16 
  - He gambled and lost.  dtexdem   Nov-21-11 02:47 PM   #17 
  - TURN THOSE MACHINES BACK ON!!!!!  Hassin Bin Sober   Nov-26-11 01:59 AM   #26 
  - So, what's this really mean?  Trillo   Nov-21-11 02:49 PM   #18 
  - If we had a real DJ, this would be an opportunity, through discovery,  ooglymoogly   Nov-22-11 08:54 PM   #24 
  - Maybe everybody  Turbineguy   Nov-21-11 03:03 PM   #19 
  - One possible plus to this  kewhawaii   Nov-21-11 03:18 PM   #20 
     - Deleted message  Name removed   Nov-26-11 12:34 AM   #25 

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