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Former AIG chief sues U.S. for $25 billion

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IDemo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:00 PM
Original message
Former AIG chief sues U.S. for $25 billion
Source: msnbc.com

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.

Read more: http://bottomline.msnbc.msn.com/_news/2011/11/21/893076...
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rfranklin Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:06 PM
Response to Original message
1. A crook screaming, "I've been robbed!"
The problem as Cramer views it, is that Greenberg was the one that led the company into its risky derivatives business, but he rarely takes any heat for these decisions. Furthermore, Greenberg has proposed a plan to reduce AIGs debt to the government, and with the stock surging more than 20% on Monday he is being hailed in some circles as a potential savior to the company.

As everyone is well aware, AIG was bailed out to the tune of $85 billion the day after Lehman Brothers fell, and they have since been bailed out three more times. To date taxpayers have lent AIG $182.3 billion, and after asset liquidations AIG still owes the government about $120.7 billion. Of course, there are doubts about whether AIG will be able to pay back the taxpayers anytime soon as they have sold off many valuable assets at fire sale prices.

http://seekingalpha.com/article/163019-cramer-hammers-a...
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freshwest Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:14 PM
Response to Reply #1
3. I don't understand this game. Never will, probably.
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elleng Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 02:22 PM
Response to Reply #3
14. I'm basically with you, just can't make outlandish claims as repugs always do,
and here, 'smart' guy thinks he (and/or smartass counsel) think they can outsmart the world.
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freshwest Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 03:22 PM
Response to Reply #14
21. 'If you can't dazzle them with your intelligence, baffle them with your bullshit,' is
what this crook and the GOP are about. And the lapdog media just keeps on wagging its tail at these bad actors.
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elleng Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 03:33 PM
Response to Reply #21
22. Perfect, you got it.
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dotymed Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 02:09 PM
Response to Reply #1
13. No Shit and the greedy bastard will probably get it.
Of course, we the people, are the ones that will actually pay for this, one way or another. Hey, "overhead" has to be passed to the consumer."

How strange that NONE of the billion$ in "bonuses" never even "trickle-down" to us. It almost makes you wonder if this game is not rigged..... GO OWS!
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unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:13 PM
Response to Original message
2. how do even measure the size of balls that big?
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DocMac Donating Member (429 posts) Send PM | Profile | Ignore Mon Nov-21-11 01:22 PM
Response to Reply #2
5. You have to use the Doppler effect lol.
The way they find orbiting planets around a sun too far away to see the planet.
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AngryAmish Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:53 PM
Response to Reply #2
12. The thing is Greenberg did not go nuts with the credit default swaps
They tossed him out, CDS sales went through the roof and bang goes the dynamite.
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baldguy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:18 PM
Response to Original message
4. How much did AIG's shenanigans cost the US economy? $100B? $1T?
The AG should counter-sue.
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SoapBox Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:25 PM
Response to Original message
6. ...dirt bag.
Of all the nerve.
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BumRushDaShow Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:28 PM
Response to Original message
7. He should be in jail. n/t
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Scuba Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:30 PM
Response to Original message
8. Jeezus H. Krist in a basket. These fuckers are beyond arrogant. Erik, lock his ass up, please. n/t
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plumbob Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:33 PM
Response to Original message
9. This is why I am an atheist. No god would allow scum like Maurice
to exist.

Is that "Hank" as in hank of hair and a piece of bone?
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Corruption Winz Donating Member (581 posts) Send PM | Profile | Ignore Mon Nov-21-11 01:37 PM
Response to Original message
10. The audacity of this rat bastard..
It's something to marvel at. It's something historians will discuss for decades. Sadly, I CAN believe a person in his position would do something like this as many (not all, but many) feel entitled to what they're working with, whether or not they truly worked for it.

Disgusting. Just another example of someone who was allowed to get on 3rd base and believes he hit a triple. Rat. Bastard.
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jtuck004 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 01:50 PM
Response to Original message
11. "Who's Your Daddy Now?"
Edited on Mon Nov-21-11 01:52 PM by jtuck004
:rofl:

See the decrease in financial crime prosection here.

(top of the "Statistics" article)
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ooglymoogly Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 02:28 PM
Response to Reply #11
15. Holder is the fluffer in chief, second only to the prez.
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Nihil Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-22-11 04:07 AM
Response to Reply #11
23. Oh hush ...
... you'll only wake up the Circle-D crowd who'll "explain" how
mere facts are so damn inconvenient when you have faith in the
Glorious Leader ...

:evilgrin:
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russspeakeasy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 02:29 PM
Response to Original message
16. We should each sue for $1 trillion for the shit we have to put up with.
Edited on Mon Nov-21-11 02:30 PM by russspeakeasy
...and why isn't this asshole in jail?
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dtexdem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 02:47 PM
Response to Original message
17. He gambled and lost.
So wants to sue those who took over the corrupt casino.

And how much would his AIG stock have been worth without the bailout?
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Hassin Bin Sober Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-26-11 01:59 AM
Response to Reply #17
26. TURN THOSE MACHINES BACK ON!!!!!
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Trillo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 02:49 PM
Response to Original message
18. So, what's this really mean?
Presuming the news is never or seldom reflective of the true behind-the-scenes power-moves, is it reasonable to take this at face value?

One thought is it's diversionary, tie up some DOJ staff in a frivolous action. Why?
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ooglymoogly Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-22-11 08:54 PM
Response to Reply #18
24. If we had a real DJ, this would be an opportunity, through discovery,
to find out where the real skeletons are buried. Oh wait, they already know that...perhaps this is just another bailout not needing public scrutiny or congressional approval. The judge made me do it.

They clearly have the lobbying clout to do this...as witnessed so many times before, they just don't like the blow back from the public.

a new kind of blackmail....we'll expose all if we don't get the cash, so don't try too hard to foil our "legal" efforts.....lay down and roll over sukka's.


Is it just a more imaginative way to steal, without the repercussions.

It ain't over till the fat Don sings.
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Turbineguy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-21-11 03:03 PM
Response to Original message
19. Maybe everybody
with a home or retirement account can get together for a nice class action to the tune of 8 or so trillion.
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kewhawaii Donating Member (6 posts) Send PM | Profile | Ignore Mon Nov-21-11 03:18 PM
Response to Original message
20. One possible plus to this
Go ahead, Hank, sue. You won't have Fox spinning your story for you. The facts, lots of them, will come out in court via discovery, etc. It will also then be part of the legal record. His arrogance will hopefully be his undoing.

The downside is that AG Holder will have a role in it, and he clearly is reluctant to go after Wall Street.
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Name removed Donating Member (0 posts) Send PM | Profile | Ignore Sat Nov-26-11 12:34 AM
Response to Reply #20
25. Deleted message
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