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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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Tue, 01/08/2013 - 09:33 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

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

 

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

Tue, 01/08/2013 - 09:34 | Link to Comment Mae Kadoodie
Mae Kadoodie's picture

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

Tue, 01/08/2013 - 09:35 | Link to Comment knukles
knukles's picture

Fix It Again Timmah

Tue, 01/08/2013 - 11:17 | Link to Comment Spirit Of Truth
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.

Tue, 01/08/2013 - 11:20 | Link to Comment Harlequin001
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...

Tue, 01/08/2013 - 11:31 | Link to Comment jplotinus
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.

Tue, 01/08/2013 - 11:35 | Link to Comment Overfed
Overfed's picture

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

Tue, 01/08/2013 - 14:23 | Link to Comment Harlequin001
Harlequin001's picture

Yep, it was...

Tue, 01/08/2013 - 15:58 | Link to Comment MisterMousePotato
MisterMousePotato's picture

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

Tue, 01/08/2013 - 18:31 | Link to Comment Heavy
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.

Tue, 01/08/2013 - 13:57 | Link to Comment waterhorse
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".

Tue, 01/08/2013 - 13:32 | Link to Comment waterhorse
waterhorse's picture

"Foam the runways" for AIG?

Tue, 01/08/2013 - 09:51 | Link to Comment vmromk
vmromk's picture

America can now be officially classified as a BANANA REPUBLIC.

Un FUCKing REAL.

Tue, 01/08/2013 - 13:58 | Link to Comment bidaskspread
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.

Tue, 01/08/2013 - 10:07 | Link to Comment smlbizman
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.....

Tue, 01/08/2013 - 10:10 | Link to Comment LawsofPhysics
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.

Tue, 01/08/2013 - 10:30 | Link to Comment Ignatius
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.

Tue, 01/08/2013 - 11:37 | Link to Comment Winston Churchill
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.

Tue, 01/08/2013 - 12:11 | Link to Comment LawsofPhysics
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!

Tue, 01/08/2013 - 12:12 | Link to Comment Winston Churchill
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.

Tue, 01/08/2013 - 11:38 | Link to Comment QQQBall
QQQBall's picture

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

Tue, 01/08/2013 - 13:34 | Link to Comment waterhorse
waterhorse's picture

Covington & Burling?  Dewey, Cheatam & Howe?

Tue, 01/08/2013 - 14:23 | Link to Comment Winston Churchill
Winston Churchill's picture

Sue,Grabit and Runn.

Wed, 01/09/2013 - 00:02 | Link to Comment philipat
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"??!!

Tue, 01/08/2013 - 09:44 | Link to Comment SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

This is what we call "corporate crony cannibalism"

Tue, 01/08/2013 - 10:51 | Link to Comment MiddleageThinni...
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.

Tue, 01/08/2013 - 11:02 | Link to Comment LawsofPhysics
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.

Tue, 01/08/2013 - 11:34 | Link to Comment JonNadler
JonNadler's picture

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

Tue, 01/08/2013 - 13:26 | Link to Comment goldfreak
goldfreak's picture

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

Tue, 01/08/2013 - 13:38 | Link to Comment viahj
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.

Tue, 01/08/2013 - 09:55 | Link to Comment sessinpo
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.

Tue, 01/08/2013 - 10:26 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Anything else?

Tue, 01/08/2013 - 10:37 | Link to Comment williambanzai7
williambanzai7's picture

THANK YOU AIG

Tue, 01/08/2013 - 13:36 | Link to Comment waterhorse
waterhorse's picture

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

Tue, 01/08/2013 - 11:32 | Link to Comment USS Bernanke
USS Bernanke's picture

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

Tue, 01/08/2013 - 09:30 | Link to Comment Hippocratic Oaf
Hippocratic Oaf's picture

Bwahahahahaha.

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

Tue, 01/08/2013 - 10:03 | Link to Comment CPL
CPL's picture

LOL!!  It is and it isn't.

 

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

Tue, 01/08/2013 - 09:32 | Link to Comment Seer
Seer's picture

And we want to save this System?

Tue, 01/08/2013 - 10:49 | Link to Comment Element
Element's picture

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

Conservation of Nothing principle ;)

Tue, 01/08/2013 - 12:29 | Link to Comment secret_sam
secret_sam's picture

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

Tue, 01/08/2013 - 18:34 | Link to Comment Heavy
Heavy's picture

Tell it to Shiva.

Tue, 01/08/2013 - 09:34 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Shut AIG down. Completely this time.

Tue, 01/08/2013 - 09:39 | Link to Comment GetZeeGold
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

Tue, 01/08/2013 - 09:59 | Link to Comment sessinpo
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.

Tue, 01/08/2013 - 11:04 | Link to Comment LawsofPhysics
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!!!!

Tue, 01/08/2013 - 11:47 | Link to Comment cranky-old-geezer
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.

Tue, 01/08/2013 - 18:18 | Link to Comment ajax
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.

Tue, 01/08/2013 - 09:34 | Link to Comment LongSoupLine
LongSoupLine's picture

Long...lawyers.

 

 

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

Tue, 01/08/2013 - 10:06 | Link to Comment Beam Me Up Scotty
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.

Tue, 01/08/2013 - 12:19 | Link to Comment MachoMan
MachoMan's picture

Of course, your founding fathers were predominantly lawyers too...

Tue, 01/08/2013 - 15:32 | Link to Comment Totentänzerlied
Totentänzerlied's picture

"were predominantly lawyers"

Is it any wonder their common legacy is now the most cancerous and complex legal system (and legal entity, too) in history?

Tue, 01/08/2013 - 17:46 | Link to Comment MachoMan
MachoMan's picture

Actually, this is simply a function of business prowess...  I'm guessing that when the next country overtakes the united states economically, there will be an absurd amount of laws on its books. 

The legal system does not exist in a vacuum...  in an incubation stage and before the age of reason, the legal system can be pure...  naive to the world...  and function as ideally intended...  much like a child.  However, in short order, the system is corrupted by the desire of men to seek rent and to ensure that competition does not create the normalization of their profits.   Further, even the best courts can be bound by bad law...

This isn't a legacy of lawyers per se, this is a legacy of humans...  watch our successors and see what happens...  I'm guessing you'll get a rinse, wash, repeat.

PS, you can also discuss some of the other legacies...  e.g. the bill of rights...  and, although much of it has been systematically and incrementally trampled, still presents a giant leap forward in the concept of the social contract.

 

Tue, 01/08/2013 - 13:39 | Link to Comment waterhorse
waterhorse's picture

except for Macho Man and BKLawyer ; )

Tue, 01/08/2013 - 10:06 | Link to Comment ziggy59
ziggy59's picture

Long ...Rope.. Actually 8 ft will suffice..
Long Wood and Sharp Medical Grade Stainless

Tue, 01/08/2013 - 10:16 | Link to Comment Agent P
Agent P's picture

Long paper companies, Xerox and Hewlett-Packard...16 million pages requested, with multiple copies for multiple law firms I'm sure...double bonus on HPQ as we'll likely print the settlement.

ps: Regarding the story itself...WTF?!?!?!

Tue, 01/08/2013 - 11:13 | Link to Comment swiss chick
swiss chick's picture

Well said...

Tue, 01/08/2013 - 09:35 | Link to Comment AccreditedEYE
AccreditedEYE's picture

To be honest, maybe this will actually teach government to let capitalism WORK and let sick companies go down the tubes and die like they deserve. I'm sure this "lesson" will be remembered during the next financial blow up.... until then, BUY THE F-ING DIP!!

Tue, 01/08/2013 - 09:42 | Link to Comment Mad Mohel
Mad Mohel's picture

Teach them a lesson? They aren't making mistakes. It is intentional and calculated. If anything the corruption of these bastards should be taught as a lesson to the public of what happens when you don't hold politicians accountable and hold their feet to the fire. It is all planned and played.

Tue, 01/08/2013 - 09:49 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Well, maybe I should say that they won't easily get public support for another financial bailout. Either way, I agree with you that the ship is going down. Till then, buy the dip.

Tue, 01/08/2013 - 10:00 | Link to Comment disabledvet
disabledvet's picture

"Killed with kindness." the bailout is not going according to plan. We are suppose to be in the throes of a massive inflation with mayhem and hyperbolic symbology overwhelming us. Instead we have falling prices and the shorts getting slaughtered three years running. "go ahead...sue the Government." who knows what they'll do next...

Tue, 01/08/2013 - 11:07 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Shit, entities like AIG own the government via K-street and their lobby.  Let the fuckers sue themselves.  The real victums are the taxpayers and shareholders who lost capital in the deal that they could have put to productive use otherwise.  The big difference being that the shareholders at AIG did so voluntarily whereas the taxpayers were simply robbed.

Tue, 01/08/2013 - 10:12 | Link to Comment sessinpo
sessinpo's picture

I differ in view from you slightly but mostly I agree.

 

Here is where I differ from you. Capitalism is WORKING. But I think we both agree it is being manipulated. You  and I are just impatient on what we know should happen but is being delayed by that manipulation. That doesn't mean capitalism isn't working though. To explain and simplify:

Say we have a single market, let's make it a basic commodity such as corn. The government or various instiutions can manipulate that market and do it for a long time. We see subsidies, we see uneconomical markets created such as corn ethanol. And the money flows into corn markets even though you and I know it shouldn't and even though you and I see the market is being manipulated through regulation or whatever means. But at some point, even after years or decades, the market can no longer support that market under those false pretenses. And that market collapses.

It's another description of a bubble.

 

Finally, I disagree with you on the concept of teaching government. Government is an institution. People learn and can change. Yes, I know people make up government and institutions so one might assume that government and institutions can learn. But that is a false idea. The majority of people associated with an institution ADOPT that institutions ideology and thought process. We see that the majority of the people within that institution strive to achieve employment cohesiion - go along to get along.

 

People learn but governments and institutions don't which is another strong argument for smaller government and less power given to them. Thousands of years of history back that up.

Tue, 01/08/2013 - 12:25 | Link to Comment MachoMan
MachoMan's picture

Wrong...  stuffing feathers up capitalism's ass does not make it a chicken...  capitalism is working, but this IS capitalism...  to take my liberties from a few lines of the watchmen:

[Surveying the carnage after the Comedian has broken up one of the "Keene Act Riots" by gleefully shooting rioters] "We were supposed to make the world a better place! What the hell happened to us?!"...[quiet and broken] "...What happened to the CAPITALISM dream?"

(While shooting gleefully into a crowd of rioters, Nite Owl asks him what happened to the CAPITALISM Dream) What happened to the CAPITALISM dream? It came true! You're looking at it!

Tue, 01/08/2013 - 13:06 | Link to Comment secret_sam
secret_sam's picture

In a properly capitalist world, the government is just another commodity traded on an open market.  We're closer to that than many people would like to accept.

Tue, 01/08/2013 - 17:45 | Link to Comment MachoMan
MachoMan's picture

Yep...  people tend to picture capitalism and socialism at two poles of the same line...  however, it's not that simple and the difference between the two is often practically impossible to distinguish.  Virtually each type of economic/social system entails a system of pitchers and catchers inherently compartmentalized.  We haven't figured out how to do anything differently...  yet.

Tue, 01/08/2013 - 18:40 | Link to Comment ajax
ajax's picture

 

sessinpo:"People learn but governments and institutions don't which is another strong argument for smaller government and less power given to them. Thousands of years of history back that up."

 You really are some sort of bloody imbecile to write such a comment. Sorry but gov't and institutions are people - they aren't the "Commandments" written in stone by some Sky Creature. Get a grip mate. People fight and die or survive to change the ideologies which they live with or don't want to live with - or under.

 It's a damn good thing that the USA finally decided to end African slavery on its shores - albeit woefully later than any other "civilized" country. "Free market" - back to slavery again only this time the USA is employing the unseen, unheard, but it isn't working out so well this time round is it? "Free Market" bah fucking humbug. 

Tue, 01/08/2013 - 09:35 | Link to Comment Dr. Engali
Dr. Engali's picture

Unfuckingbelievable! That pig should be dead and buried along with the rest of this parasitic system.

Tue, 01/08/2013 - 09:50 | Link to Comment fonzannoon
fonzannoon's picture

Doc think about it this way....why put this out? AIG obviously is just an extension of the fed. So would they really bite the hand that feeds it? Maybe...just maybe stories like these are setting up the next manufactured crisis. Except when this crisis comes everyone can revert back to this story and say "we ain't bailing em out this time!".

Then our overlords use that crisis as a way to offer all sorts of gubby guarantees as alternatives to the current system.

Just a thought.

 

Tue, 01/08/2013 - 10:20 | Link to Comment sessinpo
sessinpo's picture

I disagree. This story wouldn't be needed for a manufactured crisis. You have to remember, that according to the MSM, the bailout of AIG was actually a success. According to the MSM, AIG has repaid its bailout to the government at a profit as opposed to GM which is still a government (taxpayer) loss.

Tue, 01/08/2013 - 10:34 | Link to Comment Dr. Engali
Dr. Engali's picture

I agree, that's the first thing that popped into my mind. AIG was used to set up the first "crisis" , but the ridiculousness of it all drives me insane.

Tue, 01/08/2013 - 09:37 | Link to Comment knukles
knukles's picture

The Karma of Kelptocracy

 

Tue, 01/08/2013 - 09:37 | Link to Comment Everyman
Everyman's picture

This is about as absurd as it fucking gets!  We saved those miserable blated corrupt and bankrupt assholez and NOW they want to fucking sue US the US Taxpayer???

FINE!  Let the case go forward, as AIG will learn, "legal discovery" is a bitch.

Disclosure Bitchez!

Tue, 01/08/2013 - 10:53 | Link to Comment Element
Element's picture

if you give them a really juicy bonus package they may just call it off, that's all they really want

Tue, 01/08/2013 - 09:39 | Link to Comment Manthong
Manthong's picture

Claw back all the bonuses and start over again.

Cap the executives.. uncap the company.

Tue, 01/08/2013 - 10:04 | Link to Comment ziggy59
ziggy59's picture

Is that cap em with Pb?

Tue, 01/08/2013 - 09:39 | Link to Comment buzzsaw99
buzzsaw99's picture

it seems absurd but really it isn't. the politicians do what they're told. they would pay damages to aig shareholders if instructed to do so by jamie dimon and lloyd blankfein.

Tue, 01/08/2013 - 09:39 | Link to Comment Mad Mohel
Mad Mohel's picture

Where is the motherfucking firing squad already.

Tue, 01/08/2013 - 09:41 | Link to Comment Poetic injustice
Poetic injustice's picture

Will those documents be provided and have a signature of Linda Green?

Tue, 01/08/2013 - 09:53 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

If you run short....I've gotta couple.

Tue, 01/08/2013 - 09:42 | Link to Comment Papasmurf
Papasmurf's picture

I'm pretty sure the census taker captured the GPS coordinates for AIG's front door.  Their complaint boarders on a terrorist threat.

Tue, 01/08/2013 - 09:46 | Link to Comment lolmao500
lolmao500's picture

AIG should have been given the death penalty a long time ago.

Tue, 01/08/2013 - 09:50 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

I totally agree.  In fact I posted that exact thing on the Yahoo Message Boards years ago.

All the Governemnt did was give them a Loan.  The problem comes when the Government gave them selves Warrants, plus,  put themselves in a Major Ownership position, in addition to the high interest rate on the Loan.

The Government did take Shareholder Value without just compensation.  Especially with the Warrants and percentage of Ownership they issued themselves. Just like any other property in Eminent Domain Laws the Shareholders should be compensated.

I hope they win.

Tue, 01/08/2013 - 10:13 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

What shareholder value? The company was dead otherwise. Do shareholders in Enron still retain some "value". Piss off asshole, this whole thing is nothing more than a reason for lawyers to make a fortune off of a case that wouldn't even exist if AIG had been allowed to fail in the first place.

Tue, 01/08/2013 - 10:26 | Link to Comment sessinpo
sessinpo's picture

Thumbs for you. Why? You replied to someone that made a cordial statement and opinion, maybe it is wrong maybe it was right but certainly wasn't offending or attacking anyone. It was something to debate. But you dragged it down into name calling, making it personal attack. In other words, you showed yourself to be the asshole. But I won't call you one. You did it yourself. And by the way, I have often called myself an asshole in my own posts. It was usually after replying to someone like you that dragged the thread down.

 

Other than that, I agree with you that this is a way for some to make money on an institution that should have been allowed to fail in the first place.

Tue, 01/08/2013 - 12:06 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Scotty,

AIG was negotiating with the Banks to pay Pennies on the Dollar for their Derivatives.  The Government took AIG over and then paid 100% on the Dollar to the Banks.

Just the fact that AIG is still in Business, even after the Loan from the Government shows that AIG would have survived with just a Loan.  It would have even been in a better position if they had been allowed to pay 2 pennies for ever Dollar in Derivatives instead of a Dollar to the Banks.

Plus, what was the reason to give the Government 93% Ownership in the Company just for a Loan?  Why did the Government grant themselves so many Warrants for AIG stock.  The Banks that borrowed at the FED window did not have to give partial Ownership or Warrants to the FED for their Loans.

Tue, 01/08/2013 - 12:30 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

All the Governemnt did was give them a Loan. 

Nope, AIG was nationalized for all practical purposes, and nationalized corporations have no shareholder rights, no property rights, nothing. 

They were nationalized so GS, JPM, et al, could be paid in full by taxpayers, not have to settle for scraps from bankruptcy.

Sorta like MFG in a way, GS, JPM, et all, get paid in full regardless of what rules have to be bent and ignored, regardless of who gets robbed, customers in that case.

AIG doesn't control the govt.   GS, JPM, et al, do.

If this suit is successful it's because AIG owes more money to GS, JPM, et al, and the settlement will come from taxpayers again.  Just another way to make a bailout look like something else.

Tue, 01/08/2013 - 13:43 | Link to Comment waterhorse
waterhorse's picture

"Just another way to make a bailout look like something else."  Precisely what I was thinking. 

Tue, 01/08/2013 - 09:48 | Link to Comment Burr's 2nd Shot
Burr's 2nd Shot's picture

I fully support this lawsuit. The government should never have bailed AIG out (nor the banks, nor the auto companies, etc.). This is not a legitimate function of government in a free and capitalist society. Make the taxpayers pay for this overreach, maybe they will start paying attention.

Tue, 01/08/2013 - 09:52 | Link to Comment fonzannoon
fonzannoon's picture

Am I the only one nuts here? Please see my post above. How much shit did AIG catch for those 2008 billions in bonuses? Now they want to sue?

I call total BULLSHIT

It's a set up. AIG just got handed their script in this part of the play and they are reading it.....and we are all suckers. WE ARE OUTRAGED! OUTRAGED I TELL YOU!

Give me a freaking break.

Tue, 01/08/2013 - 10:20 | Link to Comment Burr's 2nd Shot
Burr's 2nd Shot's picture

If this was a rational society, I would agree. Of course, we wouldn't be having this discussion because "bailouts" would be what prevent boating accidents, and not bonus enhancement tools.

Tue, 01/08/2013 - 09:56 | Link to Comment Zen Bernanke
Zen Bernanke's picture

I hope AIG sues and I hope GM sues.  Not sure they have a case, but if they do, it could very well change the way governement, especially the fed and treasury, does business.   If they win, it will surely stop goverment medding in the affairs of private sector and allow poorly run and financially imprudent companies declare bankruptcy and restructure, or go out of business as the system was designed.  We should all hope they win. 

Tue, 01/08/2013 - 09:58 | Link to Comment fonzannoon
fonzannoon's picture

" it will surely stop goverment medding in the affairs of private sector and allow poorly run and financially imprudent companies declare bankruptcy and restructure, or go out of business as the system was designed"

Wow. Just WOW.

Tue, 01/08/2013 - 10:29 | Link to Comment sessinpo
sessinpo's picture

Yea, wow, just wow.

 

Since we are putting a wish list together, we don't we just go for grand prize, I JC would return.

Tue, 01/08/2013 - 09:58 | Link to Comment Dr. No
Dr. No's picture

I actually support this move by AIG.  Think about it, if the bailout didnt happen, AIG would hav filed for bankruptsy protection.  They could have kept their assets and stiffed the big banks on their losses.  Instead a hostile government came in, required they pay out with money they didnt have.  Now AIG still needs to pay the government back.  Sue them I say.

Tue, 01/08/2013 - 10:03 | Link to Comment MFLTucson
MFLTucson's picture

Your kidding right?  No one could possibly think like this.

Tue, 01/08/2013 - 10:09 | Link to Comment disabledvet
disabledvet's picture

I agree with this. "and then proceed to lose" like everyone else. "we are more important than the Government" is everywhere and always an interesting tag line...until you're not. Besides what if the Government tries to sue them back? Will it withhold foreign aid until say "the postal service is properly compensated"? How about all aid period? I kind of like this thing actually..."the smell of popcorn in the morning." smells like...Hollywood.

Tue, 01/08/2013 - 10:11 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Hell, sue the government AND Goldman. Goldman got paid with this money ... how dare I speak blasphemy to The Squid!

Tue, 01/08/2013 - 10:33 | Link to Comment sessinpo
sessinpo's picture

Dr. No:  "Now AIG still needs to pay the government back.  Sue them I say."

 

Maybe you are a little behind. AIG has paid that bailout back at a profit for the US. In fact, it is one of the RARE leftist achievements they like to spout.

Tue, 01/08/2013 - 13:47 | Link to Comment waterhorse
waterhorse's picture

"AIG has paid that bailout back at a profit for the US."

With other AIG welfare programs?  Paid back indeed.  LMAO - not at you personally - just the notion that anyone would believe it was truly "paid back".

Tue, 01/08/2013 - 09:58 | Link to Comment caimen garou
caimen garou's picture

so digusting, this country is filled with a bunch of greedy bastard lawyers that will find a way to sue anybody for anything!  AIG=assholes ,idiots,and goobers!

Tue, 01/08/2013 - 10:00 | Link to Comment azzhatter
azzhatter's picture

Sorry 99% of americans have no idea who AIG is. The same 99% know Kardasshian is preggers

Tue, 01/08/2013 - 10:04 | Link to Comment MFLTucson
MFLTucson's picture

And that somehow makes this ok?

Tue, 01/08/2013 - 10:41 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Ummm no....but it makes it workable.

Tue, 01/08/2013 - 10:01 | Link to Comment MFLTucson
MFLTucson's picture

Until these Jews like Hank Greenburg are gone, you will have such disgusting behavior.  This is fuckin disgraceful.  The bailout game thrown in your face as these cocksuckers took bonus as the global economy was saddled with thier trash assetts and American people lost their homes, savings and invetments in AIG.  Fuck you AIG!

Tue, 01/08/2013 - 10:02 | Link to Comment williambanzai7
williambanzai7's picture

All because the taxpayers didn't thank them. What a bunch of ingrates they are.

Meanwhile, how about all the documents and correspondence at AIG that Geithner put the lid on.

Tue, 01/08/2013 - 11:02 | Link to Comment chunga
chunga's picture

If memory serves...that was done in the name of "National Security".

LOL!

[EDIT]

Here ya go...from Reuters.

SEC mulled national security status for AIG details

 

(Reuters) - U.S. securities regulators originally treated the New York Federal Reserve's bid to keep secret many of the details of the American International Group bailout like a request to protect matters of national security, according to emails obtained by Reuters.

 

Tue, 01/08/2013 - 11:43 | Link to Comment tip e. canoe
tip e. canoe's picture

it was "national security" b/c if those files were ever made public, there would be a revolution before the next morning.

imho, AIG is the pandora box for every nasty dirty rotten disgusting action done in the name of "national security" since WWII.

Tue, 01/08/2013 - 10:03 | Link to Comment HD
HD's picture

WARNING: hot coffee is HOT

WARNING: CDS backed by nothing are backed by NOTHING

 

Tue, 01/08/2013 - 10:05 | Link to Comment NeedleDickTheBu...
NeedleDickTheBugFucker's picture

I'm not sure I've ever read such a blatant example of revisionist history.  Greenberg et al really must be psycopaths if they honestly believe this horseshit.

Tue, 01/08/2013 - 11:33 | Link to Comment tip e. canoe
tip e. canoe's picture

"Greenberg et al really must be psycopaths"

now you're getting warmer

Tue, 01/08/2013 - 13:49 | Link to Comment waterhorse
waterhorse's picture

Npt surprising, as CEO is #1 occupation for psychopaths.

Tue, 01/08/2013 - 10:05 | Link to Comment Herdee
Herdee's picture

That's what you get for not letting them all go broke and selling off all the assets.The lawyers couldn't sue a better gang of competing crooks.

Tue, 01/08/2013 - 10:28 | Link to Comment Eugend66
Eugend66's picture

Lawyers ... they are all of them fu_k!ng lawyers.

Let them rot in hell!!

Tue, 01/08/2013 - 10:09 | Link to Comment francis_sawyer
francis_sawyer's picture

Poor misunderstood & oppressed Hank Greenberg...

Tue, 01/08/2013 - 10:10 | Link to Comment pragmatic hobo
pragmatic hobo's picture

if anything, ... shouldn't AIG be suing GS instead? What imbeciles.

Tue, 01/08/2013 - 10:11 | Link to Comment wisefool
wisefool's picture

This is why wild animals are better than pets.

 the AIG board (fulfilling its shareholder fiduciary duty)

A wild animal will take livestock. Just enough to survive and they are extremely careful about it. Domesticated animals will kill everything they see and not eat a morsel. They have "owners" (read lawyers) who will feed them fancy feast, bandage any bruises and slap a lawsuit on the farmer (productive member of society) if he so much as scolds the animals as they leave the scene of the massacre.

End game Corporatism and legalism are designed to take everything, till we all die. Keynes would be proud his theory turned into a framework which is now the final operating system of the human race.

Tue, 01/08/2013 - 11:27 | Link to Comment Bohm Squad
Bohm Squad's picture

Mark Twain...

 

"If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man."

Tue, 01/08/2013 - 10:12 | Link to Comment Investor Wizard
Investor Wizard's picture

Obama will just give AIG a shiny new trillion dollar coin and the matter will be settled.

Tue, 01/08/2013 - 10:12 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

If this farce results in the prevention of a single bailout, anywhere, anytime...it will have been worth it!

Tue, 01/08/2013 - 10:15 | Link to Comment ProtectiveFather
ProtectiveFather's picture

All this during the "Thank You America" ad camaign they're spending 10's of millions on? Well played, AIG.

Tue, 01/08/2013 - 10:17 | Link to Comment Cultural Capital
Cultural Capital's picture

#LWYRUP  

Tue, 01/08/2013 - 10:23 | Link to Comment Seasmoke
Seasmoke's picture

Hank can't believe he took in all the premiums and then was expected to pay 100% back on the dollar. This is not how insurance works. Unfortunately for Hank , Goldman Sachs trumped AIG.

Tue, 01/08/2013 - 10:26 | Link to Comment tedstr
tedstr's picture

Gods chosen people doing their finest, again.

Tue, 01/08/2013 - 10:32 | Link to Comment ejmoosa
ejmoosa's picture

Frankly, I think there is a story here.  The Federal Government swept in and forced AIG to pay off these fraudulent loans, which they would not have to do because they were fraudulent.  

The government they injected money into AIG to mask the treal truth about just what was happening.  

Just imagine which players would have been hurt had AIG not paid off the fraudulent loans.  Those are the players the government was acting on behalf of.

 

 

The GM story is another one altogether.

Tue, 01/08/2013 - 10:49 | Link to Comment GMadScientist
GMadScientist's picture

You're right...they "would not have had to do"...because they would not fucking exist.

Stop blaming others for the actions of AIGFP's credit derivative ponzineers like Joe Cassano Jr (still walking free, BTW).

Tue, 01/08/2013 - 11:32 | Link to Comment Canucklehead
Tue, 01/08/2013 - 10:33 | Link to Comment Gimp
Gimp's picture

Nothing new here. After WWII - GM, Ford and other American companies who had factories in Germany that were destroyed by allied bombing sued the US Government for damages and won tens of millions in replacement costs. 

 

Tue, 01/08/2013 - 10:42 | Link to Comment DOT
DOT's picture

Congress was doing God's work when it saved AIG (and Congressinal pensions) and a blessing was then delivered to the most  holy GS for the purpose of injecting liquidity.

Praise the Obama!

All serve the Squid !

 

The Rule of Law must be destroyed so Government can save us !

Tue, 01/08/2013 - 10:44 | Link to Comment GMadScientist
GMadScientist's picture

I have to fast-forward through idiotic propaganda from those asshats about how they paid back the government while they do this?

So glad they changed their name back.

Tue, 01/08/2013 - 10:47 | Link to Comment tradewithdave
tradewithdave's picture

I was suspicious when the CEO did that heartfelt "Thank You America" TV commercial, but didn't bother to shave his face.  That was a dead giveaway that the lawsuit was coming. 

 

http://tradewithdave.com/?p=14651

 

Tue, 01/08/2013 - 10:47 | Link to Comment whoopsing
whoopsing's picture

If AIG feels this way, it should sue the ones who proposed and signed the legislation personally, not the american people.Indemnity only goes so far.

Tue, 01/08/2013 - 11:01 | Link to Comment Element
Element's picture

Maybe the taxpayer should give them a game of ten-pin using Hank Paulsons head? ... just so they understand like

Tue, 01/08/2013 - 11:15 | Link to Comment yellowsub
yellowsub's picture

They had to be saved to pay Goldman... 

Tue, 01/08/2013 - 11:21 | Link to Comment jplotinus
jplotinus's picture

Firstly, unlike food stamps, ue comp, aid to children and section 8 housing, little or no stigma attaches to bank and corporate bailouts and tax giveaways.

That is one reason why dogmatic stigma using "makers/takers" shaming that is popular around here is a huge error.

A second likely outcome of this tendency towards capitalist dogma and propaganda is that it is very likely AIG will either win outright or obtain a favorable settlement. They will, after all, have the best trial lawyers working for them. And, those trial lawyers will NOT be bad mouthed as lawyers trying to get something for nothing.

When they succeed, the carping will pale in comparison with, say, the outrage that will be expressed around here if that KFC customer who ate the brain left in the chicken (current ZH article) happens to retain a more typical trial lawyer and sue for a $million or so.

Adherence to capitalism and to its propaganda and dogma is the principal problem, bitchez.

Tue, 01/08/2013 - 11:39 | Link to Comment Overfed
Overfed's picture

AIG sez: BOHICA, taxpayers!!!

Tue, 01/08/2013 - 11:47 | Link to Comment jplotinus
jplotinus's picture

Best response to AIG lawsuit might be criminal and fraud charges against AIG for its business practices that brought on the financial collapse in the first place.

Just sayin...

Tue, 01/08/2013 - 13:54 | Link to Comment waterhorse
waterhorse's picture

yes, that would quite entertaining.  Get the pig to squeal, then it squeals on the other pigs.

Tue, 01/08/2013 - 12:29 | Link to Comment Shizzmoney
Shizzmoney's picture

This is like a rapist suing the woman he raped because she got pregnant.

Tue, 01/08/2013 - 13:55 | Link to Comment waterhorse
waterhorse's picture

or the vandals who break into schools, trash everything, then fall through the skylight and sue the school.

Tue, 01/08/2013 - 13:36 | Link to Comment larz
larz's picture

Hank Greenbergasan those damn Japs

Tue, 01/08/2013 - 14:01 | Link to Comment viahj
viahj's picture

I'm really saddened that the aliens did not return on 12/21/2012 and enslave us all.  That would at least be a species unification point rather than the self-destruction we are beggetting ourselves all over the world.

Tue, 01/08/2013 - 15:23 | Link to Comment exartizo
exartizo's picture

...gives new meaning to the idea of "Biting The Hand That Feeds You."

Tue, 01/08/2013 - 16:06 | Link to Comment uncle reggie
uncle reggie's picture

Somebody has got to make a full length, feature comedy about all of this shit. It would be a box office blockbuster!

Tue, 01/08/2013 - 18:00 | Link to Comment Mr. Magniloquent
Mr. Magniloquent's picture

A welfare queen with a sense of entitlement. What else is new?

Tue, 01/08/2013 - 19:13 | Link to Comment moroots
moroots's picture

It wasn't shareholders fifth amendment rights that were violated, it was the taxpayers. 

Tue, 01/08/2013 - 19:13 | Link to Comment moroots
moroots's picture

.

Wed, 01/09/2013 - 00:20 | Link to Comment Clovis Man
Clovis Man's picture

Well, we did take away ther bonuses. I sure that hurt their feelings, and we never apologized for it.

Wed, 01/09/2013 - 02:16 | Link to Comment Hugh G.Rection
Hugh G.Rection's picture

I love that the basis for this litigation is "the shareholder's rights"...ha ha! 

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