AIG Mulls Over Lawsuit Against Washington

Posted by Orb Staff on January 08, 2013 No Comments
Categories : Residential Mortgage

13048_lawsuit AIG Mulls Over Lawsuit Against Washington From the bite-the-hand-that-saves-you department: American International Group (AIG) is reportedly considering if it should join a $25 billion shareholder lawsuit against the federal government.

The New York Times reports that the AIG board will meet tomorrow to discuss whether it should pursue a lawsuit, which argues that the federal bailout of the company deprived shareholders of billions of dollars and violated the Fifth Amendment tenet on taking private property ‘for public use, without just compensation.’ The government took control of a 92% stake in the company following the 2008 crash.

The potential for a lawsuit comes at a curious time, because the insurance company has recently begun running a national television advertising campaign that expresses its appreciation of federal intervention with the tagline ‘Thank you, America.’

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