A.I.G. (bailed out) to Sue 2 Firms to Recover Some Losses

[Omaha Steve]

Source: AP

By LOUISE STORY

The American International Group, the giant insurer rescued by the federal government during the financial crisis, on Thursday will file the first of what could be a series of lawsuits against Wall Street firms, contending that it was the victim of fraud.

The initial suit, against ICP Asset Management and Moore Capital, will claim that A.I.G. suffered losses insuring mortgage securities created by ICP. The suit says ICP manipulated those securities in a way that benefited itself and Moore Capital, which is not accused of fraud, but harmed A.I.G.

Though the insurer received a hefty bailout, much of that money ultimately flowed to banks. Now, A.I.G. is trying to “recoup potentially billions of dollars from the fraudulent conduct of these defendants and other parties,” according to a copy of the suit obtained by The New York Times.

Because A.I.G. is still largely owned by the government, taxpayers would share in any recovery. A.I.G. informed the Treasury Department of the suit on Wednesday but made the decision to sue on its own, according to a person with knowledge of the litigation. A.I.G. did not notify the Federal Reserve Bank of New York, which orchestrated its $182 billion bailout in 2008, because the company has repaid the Fed and is no longer tightly overseen by that regulator.



Read more: http://www.nytimes.com/2011/04/28/business/28aig.html?_r=1&partner=EXCITE&ei=5043

[hobbit709]

1. Talk about gall, they were in on it.

[aquart]

2. Sounds like fun.

[Demeter]

3. Let the Cannibalization Begin

[DCKit]

5. Wanna bet they'll NEVER go after Goldman Sacks?

Too bigga' bite.

[Demeter]

7. I Make No Bets Any Longer

There's too much crazy among the cannibals.

[fredamae]

4. Oooooh, This might be kinda fun...

So, let me get this straight. My initial response to this is that "the monied corps" are now turning on each other in greed?

Does anybody have some great popcorn recipes? The plain stuff is, well, "plain". I need to spice it up a bit for the upcoming "reality shows"... :)
One thing tho, when "mom & dad" go at each other on wall street, who's gonna get custody of "their kids" in DC on "The Hill"?

[xchrom]

6. Right - cause the other guys twisted their arm.

Disclosure could be interesting.

[No Elephants]

8. Usually, my gut quickly tells me which side of a lawsuit I'm rooting for.

Wanting everyone involved to lose is kind of dull.