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Biting the hand that bailed you out?

L.A. Times 2013/01/08 17:26:41
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At the same time American International Group Inc. has been running high-profile ads thanking America for the bailout that saved the company, the insurance giant reportedly is considering joining a shareholder suit against the U.S. government for the rescue.

The AIG board will meet Wednesday and could decide to join a $25-billion suit led by former chief executive Maurice "Hank" Greenberg, the New York Times reported.

The suit by Greenberg's Starr International Co. alleges that the 2008 bailout of AIG by the Treasury Department and Federal Reserve Bank of New York in which the government received an 80% ownership stake in the company violated the rights of shareholders. The ownership stake later climbed to 92%.

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Read More: http://www.latimes.com/business/money/la-fi-mo-aig...

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  • pennie 2013/01/11 19:23:19
    Yes
    pennie
    WTF really...wow
  • Derbyhat 2013/01/11 16:48:04
    Yes
    Derbyhat
    This is "biting the hand right up to the ankles". Bailed is NOT the word to be used! It should be "JAILED" for AIG, Barney Frank and Chris Dodd and more. Remember those "government watchdogs" who watched porn at day at work and still didn't get fired? Trillions of dollars in debt due to a well known few who didn't do their jobs as they were paid to do. Off with their heads!
  • richard.maloney.7 2013/01/11 14:33:29
    Yes
    richard.maloney.7
    the greed of the corperate world has no moral limits or boundries, as along as they remain in ultimate comfort and lifestyle they will go to any and all means to keep their empires in tact, even at the expense of millions of others.
    This is why they live in high towers so they dont have to see the poor and destitute
  • Kebby 2013/01/11 00:42:12
    Yes
    Kebby
    +1
    We never should have bailed them out the are not a necessity. They should have been allowed to die as many ither businesses before them have who have let greed replace better judgement. The President should have bailed out the people and would have at the same time bailed out the businesses. Without the bail out money none of tge execs in this company would have gotten those fat bonuses that the bailout money paid for. Treason is a crime punishable by prison or death. I say dump your AIG stock, insurance, boot them out of the country. Let AIG's punishment fit the crime
  • skowcog 2013/01/10 23:33:23
    Yes
    skowcog
    +1
    These people took us along with others to the brink of financial disaster. Are there any people in the banking industry worth the soul God gave them? If this isn't the biggest sham and shame ever!!!!!
  • YO 2013/01/10 21:35:55
    Yes
    YO
    +1
    The Gov't should sue/sieze the moneyfrom AIG and every one of its employees for ripping us off, and starting this whole mess to begin with. Next, the Gov't should take away ALL the money the SPECULATORS made on having gas prices go to $4-$5 a gal., and telling the public it was due to supply and demand. If any of them protest, they'll be jailed for treason, or trying to bring down country down in flames.. I would settle for execution for treason, but will have to settle for jailing them. Anything we do to be a wake-up call for these people to Stop trying to get greedy by doing crime on our dime.
  • Charles E 2013/01/10 19:48:09
    No
    Charles E
    +1
    The government forced it's version of the best possible solution on the company over the objections of a majority of shareholders and directors.
    Unless there is a trial, we may never know what backroom decisions were made in violation of the Fifth Amendment and US bankruptcy law.
  • t.eliot, topbard 2013/01/10 18:35:11
    Yes
    t.eliot, topbard
    +1
    AIG= crooks.
  • Warning t.eliot... 2013/01/10 21:35:49
    Warning
    +1
    government=more crooks!
  • LWS 2013/01/10 16:39:38
  • Lucy Pannell 2013/01/10 15:55:05
    Yes
    Lucy Pannell
    +4
    Prime example as to why the "BAILOUT $$$" should have been given to the taxpayers and not to businesses. They obviously made bad deals and mismanaged the $$$ the first time and should not have been bailed out with the tax payer dollar only to still tell the tax payer that the debt remains unsettled allowing them to be paid twice. Had the money been given to the tax payer, the tax payer could have repaid their debt and the economy would have already recovered because the tax payer would have been able to put that $$$ right back into circulation. Instead greed has one out and being paid twice is not going to suffice and they are looking to collect for a 3rd time.
  • Drummerlou 2013/01/10 15:27:29
    Yes
    Drummerlou
    +2
    This doesn't surprise me. the theme of the Conservative right at work again.We the Conservative Right worship Capitalism and the all mighty Dollar is our God,We value Money over People.We Do unto others before they do unto us.but there is no honor among our ranks.As there is no honor among thieves...as evident here.
  • jonny man Drummerlou 2013/01/10 17:31:29
    jonny man
    lol your funny how is this a right thing, because some is a Reps there are greedy is that what are you are saying. well by your think then all Dems are like Bill and cheat on their other and lie to who faces.
  • Drummerlou jonny man 2013/01/10 21:31:00
    Drummerlou
    You are right could be................
  • jonny man Drummerlou 2013/01/11 06:53:52
  • Drummerlou Drummerlou 2013/01/21 20:31:11
    Drummerlou
    To Jonny man; Sorry dude,...don't respond to a lack of Cranial activity by the use of Profanity.Can we try to keep it clean.???
  • DDogbreath 2013/01/10 15:25:39
    Yes
    DDogbreath
    +2
    After they got bailed out they "laid off" my wife.

    greed
  • Jim 2013/01/10 14:56:52
    Yes
    Jim
    +2
    If we had a real POTUS, like FDR, he would have sent in the Federal marshals, arrested the CEOs and the Boards of all involved, nationalized AIG and revoked Starr's Incorporation status. The shareholders can go to HELL!

    There is no Due Process or clever way of dealing with such arrogance. FORCE MAJEURE is the only way to deal with such rogue corporations!
  • Thank y... Jim 2013/01/10 17:59:48
    Thank you but no...
    +2
    The ones who needed arresting were the people at Standard and Poor and Moodys who triple-A rated the CODs making them look safe for institutional investors to buy.
  • Jim Thank y... 2013/01/10 19:25:38
    Jim
    +1
    You're right. Thanks for the reminder! We can parole enough pot smokers to make room in the prisons for the S&P/Moody crowd.
  • Warning Jim 2013/01/10 21:39:14 (edited)
    Warning
    The government usually doesn't "force" the elite unless those openly are caught in the act as AIG top managers were and exposed for everything they really are. Believe me, there are more top managers out in La La Land that is just as worse, including those in top school management. In time, they will be exposed as well, and will give the cry "Woe is me", while crying their eye balls out.
  • Donald Eric Kesler 2013/01/10 06:00:52
    Yes
    Donald Eric Kesler
    +1
    There are some people on planet earth that reside on a world that is wholly unlike the world I occupy.
  • MOMMA THOMAS 2013/01/10 05:18:15
    Yes
    MOMMA THOMAS
    +1
    ARE YOU CRAZY?
  • Warning MOMMA T... 2013/01/10 21:40:31
    Warning
    He IS in his own world, not speaking about this one we live on.
  • Dion Prince 2013/01/10 05:13:04
    Yes
    Dion Prince
    +3
    Greenburg wants to sue for the TAX PAYERS for 25 billion when his company would have had next to nothing if the TAX PAYERS had not bailed AIG out since they were about to file for bankruptcy
    lmao greed!
  • ««Gingey, the Master Debate... 2013/01/10 04:50:46
    Yes
    ««Gingey, the Master Debater of Þ|-|Дэ†»»
    +1
    Oh, how convenient. AIG is the biggest bunch of scummy welfare queens in existence.
  • wamcalif 2013/01/09 23:20:44
    Yes
    wamcalif
    +1
    DA NOIVE !!
  • Method-Dad 2013/01/09 22:05:21
    Yes
    Method-Dad
    +4
    Are you freakin serious!!! Hey, AIG, the only reason your pissed off is that you're no longer able to give each other million dollar bonuses for going into debt. In the rest of America when one goes in debt, we can't get a loan or bailout. You ungrateful asses. I'd rather you just said thank you then shut up and sit down while finding ways to pay the public back for our generosity you idiots.
  • Purple Pinto ~PWCM~JLA 2013/01/09 21:31:13
    No
    Purple Pinto ~PWCM~JLA
    Wait a minute, people. I'm not so willing to hang AIG for this one yet.

    Remember what happened the GM stock an bond holders? The normal pecking order of who gets paid first got set aside and the UAW took priority.

    AIG may be suing on the behalf of the shareholders who got screwed in a similar manner. I'm holding out judgement just yet. Uncle Government was doing things in an unorthodox manner 'due to extraordinary circumstances' they claimed, but if they broke the law, then it would mean not only did 'fat cat' investors get hurt, but remember such stocks are also held by pension funds and John and Mary Q Public IRAs, College 529 plans, etc.
  • OA Purple ... 2013/01/09 23:51:35
    OA
    +1
    That's a possibility, but all of the details I have seen on this one point to shareholders being upset about the size of the stake versus the amount of investment.
  • Purple ... OA 2013/01/10 00:10:02
    Purple Pinto ~PWCM~JLA
    I also read another blurb later where it was theorized that AIG was using this as a bargaining chip to get the Fed to quit selling off at a loss. ??

    It may be greed, but not quite sure I'm crying foul on AIG's part just yet.
  • Sadiero... Purple ... 2013/01/10 00:52:03
    Sadierose Dobson
    +1
    That is my understanding too. Kind of a double edged sword. The government saved AIG's butt, but exacted more punishment then it needed to from AIG.
  • James Sadiero... 2013/01/10 15:33:54
    James
    The bailouts were extremely unpopular to implement and the only way for them to get passed was with those punishments.
  • Sadiero... James 2013/01/10 23:29:56
    Sadierose Dobson
    +1
    Its not the punishments so much as the punishment being administered evenly. What you expect from one company you should expect from all and here again the government gave some companies better deals then others. Maybe next time they will be smart enought to stand back and let fate take over. Who ever rises from the ashes was ment to survive.
  • James Sadiero... 2013/01/11 18:00:34
    James
    +1
    I can't agree with you more. You and I are one of the few "fringe lunatics" out there who actually thought letting the free market work was the best choice possible in this case.
  • Sadiero... James 2013/01/12 00:08:26
    Sadierose Dobson
    +1
    Our country would be so much stronger right now if the government would quit trying to help(????). Thanks for your input
  • James Sadiero... 2013/01/14 15:24:40
    James
    Certainly. It's the true mark of fate by Capitalism. Those who fail are judged by their failures and those who succeed continue to succeed. No cherry picking allowed.
  • James Purple ... 2013/01/10 15:33:15
    James
    +1
    If we would have let them fall like we were supposed to none of this would be happening anyway.
  • Purple ... James 2013/01/10 17:45:01
    Purple Pinto ~PWCM~JLA
    +1
    Easier said than done. Think of how many families, businesses and municipalities would have suffered if their insurance provider went belly up. AIG was HUGE (still are, in fact).

    AIG insured many of the conventional mortgages for instance. Not all of them were held by the big box lenders that were bailed out, either. Smaller, regional banks were also going to be gravely affected.

    People who had their homeowner's insurance would have been out that money and without a carrier.

    Car insurance, life insurance for folks who couldn't qualify at the same rate or even at all due to changing circumstances would have been negatively affected.

    The dominoes that were set to fall if AIG got what they deserved would have been absolutely hellish. It sucked to have to bail them out. I wholeheartedly agree, but remember at the time we were all hearing we had no choice. I have to wonder how much of that is true in retrospect, but I still believe it would have likely been devastating on a phenomenal level.
  • James Purple ... 2013/01/10 22:17:14

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