AIG Considers Suing US Over US Bailout Of AIG

Tyler Durden's picture

Sometimes you just have to laugh - or you will cry. In what could well have been Tuesday Humor if it wasn't so real, the AIG board (fulfilling its shareholder fiduciary duty) is considering joining Hank Greenberg's suit against the government over the cruel-and-unusual bailout that saved the company. The $25bn lawsuit, as NY Times reports, based not on the basis that help was needed but that the onerous nature "taking what became a 92% stake in the company with high interest rates and funneling billions to the insurer's Wall Street clients" deprived shareholders of tens of billions of dollars and violated the Fifth Amendment (prohibiting the taking of private property for "public use, without just compensation"). The 'audacious display of ingratitude' comes weeks after the firm has repaid the $182 billion bailout funneled to it and its clients by an overly generous Treasury. The firm has asked for 16 million pages of government documentation, this "slap in the face of the government" portends a question of whether the government will sue The Fed for enabling the recovery that strengthened Greenberg's case that the bailout was so harsh. Happy retirement Tim Geithner.

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GetZeeGold's picture

 

 

We bailed them out.....and now they're going to sue us?

 

If GM follows suit.....we'll be ruined.

Mae Kadoodie's picture

16 million pages of government documents?  That's like one page per government worker.  That will keep them busy.

Spirit Of Truth's picture

Wow! This takes the American "victimology" mindset to a whole new level!  Good thing Timmy and Ben are there for a shoulder to cry on for these financial parasites.

Harlequin001's picture

They wouldn't have been bailed out if they'd had guns would they...

They could have shot Paulson and told him to fuck off.

That would have fixed it...

jplotinus's picture

"They wouldn't have been bailed out if they'd had guns would they...

They could have shot Paulson and told him to fuck off.

That would have fixed it..."

Good grief, another call for a gun fight to resolve a dispute.

:-/

What is it about the Amurikin psyche that requires adherence to guns and killing to resolve disputes?

In this, the 21at century, one would have thought that the idea of peaceable resolution of disputes, using words, mechanisms for solving problems via petition, arbitration and other forms of communication and dispute resolution would have advanced.

Guns and killing do not resolve problems. Rather, that form of dispute resolution results in a need for constant escalation, settling of scores, vendettas, dead Hatfields and dead McCoys.

Give civilization a chance and let go of barbarianism, folks.

Overfed's picture

Dude. I'm pretty sure it was a joke. Lighten up.

MisterMousePotato's picture

"For those who feel, life is a tragedy. For those who think, life is a comedy." (Or something like that.)

Heavy's picture

It can be both.

Being that money is the new religion, maybe we need to burn the witches?

See Here: http://www.youtube.com/watch?v=UTdDN_MRe64

"More witches!!!"

It'll be interesting.

waterhorse's picture

No, but I wouldn't mind if Paulson got mowed down by one of his own "tanks in the street if we don't give AIG a bailout".

waterhorse's picture

"Foam the runways" for AIG?

vmromk's picture

America can now be officially classified as a BANANA REPUBLIC.

Un FUCKing REAL.

bidaskspread's picture

If Walter White has taught us one thing: It costs money to launder money. AIG the official launder of the banksters; they just want to get paid.

smlbizman's picture

to qoute a great squid, early kyler..(see pic)..."i love you ill kill you"......

aig...thanks america, thanks, thanks, thanks,..fuck you america, america, america america.....

LawsofPhysics's picture

How about addressing the real issue of letting bad business models and bad behavior FAIL for a change.

Roll the motherfucking guillotines already, start with paper-pushers and moneychangers and then roll to K street and then the "representatives."

Enough already.

Ignatius's picture

Hey, why not?

"Lucky Larry' Silverstein shot for the moon cashing in on 9/11, why not AIG?

Fuckers.  This will not end well.

Winston Churchill's picture

Actuall LoP they have a good case.

One of the conditions of the bailout(demanded by NYFed) was to make their

CDS contracts non recourse.

So some up there knew damn well that the REMIC trusts were hollow shells right then.

Without that securitization fraud ,AIG would have been a short term cash flow crisis.

Sure their business model was flawed.Never, ever, keep all your eggs in one basket.

A painfull lesson  in business, that I learned early ,and hard.

LawsofPhysics's picture

While I agree, it might not be for the same reasons as your observations still ignore the underlying issue of value (what product of real value did AIG produce again?) and real consequences for bad behavior.    Fuck the motherfucking paper-pushing fuckers who have been grossly over-compensated for their "labor" for far too long.  That alone is a mal-investment of capital and resources.

You also ignore the issue of regulatory capture.  These same fucks own congress, they made the fucking rules and now they don't like the deal they got from their political puppets?  Fuck them!  You also ignore the fact that the taxpayer's capital could have been used in a more productive manner.

One thing is for sure, that which cannot be sustained, won't be.  In that vein of thinking, let them sue, crash this system faster, bring it!

Winston Churchill's picture

Agreed.

So there might jus be a fragnent left to save.

Not so sure there is.The supply lines are creaking already.

New Treasury reporting forms on overseas money tranfer just came into effect.

Suddenly money now gets diverted for a few days while 'something' is going on.

Think we are much closer to TSHF moment than many realise, after the complacency

deliberately engendered by the last five years.

Got to keep the livestock calm before slaughter, else the meat is no good.

QQQBall's picture

Nice legal fees for some DC firm. 16MM pages of docs... depositions would be intresting, but they will never happen

waterhorse's picture

Covington & Burling?  Dewey, Cheatam & Howe?

philipat's picture

I agree. Let's unwind the bailout and tell the shareholders to F**k Off!!

This could be a new definition for "Chutzpah"??!!

SheepleLOVEcheddarbaybiscuits's picture

This is what we call "corporate crony cannibalism"

MiddleageThinninghair's picture

I would say cronyism doesn't go far enough.

How is it possible to pay back $182 billion over such a short period of time, 5 years?

What was the companies total profit over this time if they could repay so much so quick?

This would appear to be an insane amount of profit since I doubt they made much over the first few years.

LawsofPhysics's picture

"How is it possible to pay back $182 billion over such a short period of time, 5 years?"

-------------------------

Easy, you change the accounting rules so that former losses become profits.  Since you own the government via K-street, you change the laws to make sure you are never "technically" doing anything illegal.  The "Mark to fantasy" accounting bullshit continues.

JonNadler's picture

they paid back the 182 billion HA HA HA HA!!! That certainly is good news

goldfreak's picture

they're actually pushing this bullshit that they paid back the 185?

viahj's picture

they gave Timmah a $182,000,000,000 stamped chocolate bar with a sticky note "PAID IN FULL".  they then created a TV commerical to this fact but the joke's on the taxpayer as Timmah's ate it.  i hear the GM is contemplating a gold plated Volt to be comissioned and presented to Timmah so he can drive down Wall Street on his way to his new job.  hope he makes it before he goes up in flames.

sessinpo's picture

GetZeeGold:   " we'll be ruined."

 

I can only hope you are sarcastic. Otherwise I'd would want to ask: "Are you that clueless and that far behind?'

 

But then I realized, if I have to ask you that, I am wasting my time even asking you.

waterhorse's picture

Ah, Benmosche.  The guy who said AIG did the US a "favor" by taking the bailout.

USS Bernanke's picture

So much for that new PR campaign about how thankful AIG was for Americans help.

Hippocratic Oaf's picture

Bwahahahahaha.

Wait...........ain't funny!

CPL's picture

LOL!!  It is and it isn't.

 

As organised as a fart in a wind storm...

Seer's picture

And we want to save this System?

Element's picture

it's OK ... it's only fiat

Conservation of Nothing principle ;)

secret_sam's picture

As far as I know, it is true that nothing cannot be created or destroyed.

Bicycle Repairman's picture

Shut AIG down. Completely this time.

GetZeeGold's picture

 

 

Better nuke the site......just to be sure.

 

I've seen reruns of Aliens.......they'll just keep coming if we don't.

 

They mostly come at night.....mostly.

http://www.youtube.com/watch?v=B436avtEXzs

sessinpo's picture

Shut down the government is more like it. AIG should have been allowed to fail as should have some banks and GM. It was the Federal government that allowed them to exist in corruption through government's own corruption.

Yes, AIG should be shut down, but this is a reaction and one must realize that the problem is that Government is facilitating corruption and manipulated markets.

Eventually, free market will take control and various institutions will go under. But like you and I, we tire of "when" it will happen.

LawsofPhysics's picture

AIG, and other paper-pushers, own the fucking government via K-street.  Claw back all that wasted captial and resources and return it to the real victum here,  THE TAXPAYER!!!!

cranky-old-geezer's picture

 

 

Eventually, free market will take control and various institutions will go under. But like you and I, we tire of "when" it will happen.

Biggest skittle-shitting unicorn fairytale fantasy of all is "free market" returning, banks busted, perps & politicians punished ...and the cherry on top, "restore the Constitution".

Never has happened in human history, and no, this time ain't different.

Once a bananna republic, always a bananna republic.

ajax's picture

 

@sessimpo "Eventually, free market will take control and various institutions will go under. But like you and I, we tire of "when" it will happen."

 "free market" - you have no idea what one looks, smells, feels like. You have no idea what a free market is. You can't know. There has never been one and for good reason: monopolies. A "free market" will always lend itself to a monopoly in any commodity - in any direction. You don't want a free market - not really - so get over it and go further. Go further into what is needed where to produce what and what for and for whom and when and why... It's a bitch mate. It's a real bitch beeeaach day at the beach but "free market" has nothing to do with the USA or any other piece of terra firma which you can build your precious little family cabin on. Time to grow up and face the music: you've been lied to all your life. Take Rick Santelli out back and .... please.

LongSoupLine's picture

Long...lawyers.

 

 

Fuck you AIG, fucking full retard destroyers of middle class wealth.  Eat fucking pig shit assholes.

Beam Me Up Scotty's picture

Lawyers need to be placed along side bankers on the lamp post. They are part of the parasite class too.