Daily Archives: January 10, 2013

AIG considers lawsuit against government

AIG is considering joining a lawsuit against the US government claiming that the bailout harmed its shareholders.  Starr International, a company that once owned 12% of AIG, will ask the AIG board to join its lawsuit against the government.

The complaint filed in November 2011 alleged that the government charged a “punitive” interest rates on its loans and enabled a “backdoor bailout” of the insurer’s Wall Street clients by using AIG money to pay off credit default swaps.

If AIG decides to join the lawsuit, AIG could face additional shareholder lawsuits if it decides against joining the $25 billion suit and the action ultimately proves successful, according to the New York Times DealBook Blog.

 

via AIG Considers Joining Suit Claiming Its Government Bailout Harmed Shareholders – News – ABA Journal.

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