Lawmakers Warn A.I.G. Not to Join Lawsuit Against U.S.
Source: nyt
As the board of the American International Group weighs whether to join a shareholder lawsuit against the United States government, several lawmakers have a simple message for the bailed-out insurer.
Don’t do it. Don’t even think about it.
With A.I.G. having fully repaid its $182 billion bailout only weeks ago, the prospect of the company trying to claw back some of the $22 billion in profit that its rescue generated for shareholders doesn’t sit right with several members of Congress. . .
“A.I.G. became the poster company for Wall Street greed, fiscal mismanagement, and executive bonuses – the taxpayer and economy be damned,” Representatives Peter Welch of Vermont, Michael Capuano of Massachusetts and Luis V. Gutierrez of Illinois wrote in the letter. “Now, A.I.G. apparently seeks to become the poster company for corporate ingratitude and chutzpah.”
And Senator Elizabeth Warren, the new Democratic senator from Massachusetts, added in her own statement:
“A.I.G.’s reckless bets nearly crashed our entire economy. Taxpayers across this country saved A.I.G. from ruin, and it would be outrageous for this company to turn around and sue the federal government because they think the deal wasn’t generous enough. Even today, the government provides an ongoing, stealth bailout, propping up A.I.G. with special tax breaks — tax breaks that Congress should stop. A.I.G. should thank American taxpayers for their help, not bite the hand that fed them for helping them out in a crisis.“
Read more: http://dealbook.nytimes.com/2013/01/08/lawmakers-warn-a-i-g-not-to-join-lawsuit-against-u-s/?hp
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