AIG won't join shareholder suit against US
Facing a certain backlash from Washington and beyond, American International Group Inc.'s board says it won't join a shareholder lawsuit against the federal government over the insurer's $182 billion bailout by the government.
AIG was legally obligated to consider joining the lawsuit being brought against the government by former AIG Chief Executive Maurice Greenberg, who claims that the terms of the $182 billion bailout weren't fair to AIG shareholders.
The prospect of AIG joining the lawsuit had already triggered outrage. A congressman from Vermont issued a statement telling AIG: "Don't even think about it."
Massachusetts Congressman Michael Capuano and Vermont Congressman Peter Welch sent the company a letter warning against the move, calling it the height of corporate ingratitude.
AIG was rescued from the brink of collapse by the U.S. government at the height of the 2008 financial crisis. The insurance company nearly imploded after making huge bets on mortgage investments that later went wrong.
The complaint asserts the government didn't provide shareholders just compensation when it took a nearly 80 percent stake in the insurer as part of the bailout. AIG says by law its board of directors had to consider the matter.
The news comes as AIG broadcast a new series of television commercials thanking America for saving the company.
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