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AIG Generously Decides Not To Sue The Country That Bailed It Out

Tyler Durden's picture




 

While Ackman and Loeb battle it out over HLF, the other potentially firework-prone battle has died an ignominious death. The WSJ reports that AIG has generously decided not to bit the Treasury hand that fed it just a few short years ago:

  • *AIG WON'T JOIN GREENBERG SUIT CHALLENGING U.S. BAILOUT  :AIG US
  • *AIG WON'T PURSUE CLAIMS ITSELF                          :AIG US
  • *AIG SEES FILING FORMAL STATEMENT WITH COURTS IN COMING WEEKS
  • *BENMOSCHE SAYS HE PERSONALLY TOLD GREENBERG ABOUT AIG VOTE

It seems that common-sense prevailed for once - or did Benmosche and team get a friendly tap on the shoulder from outgoing Treasury head Geithner that stirring up a few million pages of Treasury documentation would not be good for anyone?

 

Via WSJ:

American International Group Inc.'s directors decided Wednesday not to participate in a lawsuit that accuses the U.S. government of taking advantage of the company in its rescue from the financial crisis, according to two people briefed on the decision.

 

The suit was filed in 2011 in a federal claims court by Starr International Co., the company headed by AIG's 87-year-old former chief executive, Maurice R. "Hank" Greenberg, and seeks $25 billion in damages for AIG and its shareholders. Starr requested that AIG join it in pursuing the claims, and the insurer's board agreed to hear presentations on the suit during Wednesday's meeting.

 

News of AIG's consideration of the matter this week unleashed a torrent of criticism that the big insurer appeared ungrateful toward taxpayers for the massive rescue effort, one of the biggest of the 2008-09 crisis.

 

Mindful of the potential backlash, a number of AIG directors entered Wednesday's meeting leaning toward rejecting Starr's request to join its suit, people familiar with their thinking said. Endorsing Starr's action, the people said, could hinder AIG's efforts to rebuild its reputation.

 

Last month, the U.S. government sold its last remaining shares in AIG, and on Jan. 1 the company launched a nationwide advertising campaign thanking U.S. taxpayers and touting its recovery from the crisis.

 

AIG's directors met for dinner Tuesday night in advance of Wednesday's unusual mock-trial-like session, in which teams of high-powered lawyers representing Starr, the U.S. Treasury and the Federal Reserve were expected to make presentations about the matter.

 

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Wed, 01/09/2013 - 16:18 | 3137896 LongSoupLine
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I guarantee Goldman was fucking involved with that "tap on the shoulder". Fuckers behind the scenes making fucking drug deals.

Fuck off AIG.

Wed, 01/09/2013 - 16:26 | 3137952 NotApplicable
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"Endorsing Starr's action, the people said, could hinder AIG's efforts to rebuild its reputation."

I'd say their reputation as a CIA financial entity has already been built.

Wed, 01/09/2013 - 16:37 | 3138026 nope-1004
nope-1004's picture

Another Insolvent Guarantor

 

Wed, 01/09/2013 - 16:48 | 3138082 DaveyJones
DaveyJones's picture

another intertwined gangbanger

Wed, 01/09/2013 - 17:16 | 3138240 otto skorzeny
otto skorzeny's picture

assailing ignorant gentiles

Fri, 01/11/2013 - 02:47 | 3143534 Ctrl_P
Ctrl_P's picture

 

all in gambler

Fri, 01/11/2013 - 02:49 | 3143538 Ctrl_P
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Anal Intrusion Gimp

Wed, 01/09/2013 - 16:32 | 3137979 AlaricBalth
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You are right LSL. Any litigation concerning AIG and the government would have allowed into evidence, and the public domain, certain financial documentation, e-mail records, internal memos, etc., that would not have stood up under public scrutiny. It would have opened Pandora's Box and this just could not happen. Too many skeletons.

Wed, 01/09/2013 - 21:13 | 3139186 SaveTheBales
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Mr. Greenberg, meet Mr. Foster.

Mr. Foster, Mr. Greenberg.

Wed, 01/09/2013 - 16:42 | 3138054 ReeferMac
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I found it interesting reading this article, when prior in the day an informative one from Reggie Middleton explained WHY AIG might want to enjoin the suit (and per usual, the man made a great deal of sense). Reggie direclty implicated Goldman's bailout of the CDS swaps on AIG, as the reason AIG was forced into taking the bailout - So GS didn't have to pay-out on the CDS it had written.

 

Wed, 01/09/2013 - 16:23 | 3137927 lolmao500
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Certainly they need another bailout for them being so kind!

Wed, 01/09/2013 - 16:25 | 3137942 AccreditedEYE
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The train is about to leave the station, AGAIN..... This is seriously becoming so easy, a child could do it.

Wed, 01/09/2013 - 16:25 | 3137945 Mad Mohel
Mad Mohel's picture

Benmosche and Greenberg decided against biting the hand that fed them. This is worrisome because it means these shysters have something even more sinister in the works.

Wed, 01/09/2013 - 16:26 | 3137946 Cognitive Dissonance
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It would have been a PR nightmare if they had.

<I feel their pain.........NOT.>

Wed, 01/09/2013 - 16:49 | 3138097 DaveyJones
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Yes, I prefer their horrors happen when they're conscious

Wed, 01/09/2013 - 16:26 | 3137950 Say What Again
Say What Again's picture

I wonder how many guns Hank Greenberg has hidden away.

Wed, 01/09/2013 - 16:26 | 3137953 earleflorida
earleflorida's picture

the beginning of the end, for what seems to have created the housing burst that destroyed the u.s. economy has unknowingly brought upon itself... self-immolation

fuck you greenburg

Wed, 01/09/2013 - 16:30 | 3137986 SuperDeDuper
SuperDeDuper's picture

People are fucking retarded, plain and simple.

Wed, 01/09/2013 - 16:43 | 3138063 ReeferMac
ReeferMac's picture

Alas, I have but one vote to cast.

Wed, 01/09/2013 - 16:31 | 3137992 PUD
Wed, 01/09/2013 - 18:13 | 3138555 TheCanadianAustrian
TheCanadianAustrian's picture

Now that's a misleading headline.

Wed, 01/09/2013 - 16:33 | 3138004 lolmao500
lolmao500's picture
In other news... President Obama spokesman Jay Carney says Congress must act to raise debt ceiling - No alternative to Congress raising the debt ceiling.

What a load of BULLSHIAT.

Wed, 01/09/2013 - 16:35 | 3138017 Dr. Engali
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The squid doing God's work for the muppets again. All hail the squid.

Wed, 01/09/2013 - 16:43 | 3138059 ReeferMac
ReeferMac's picture

PRAISE THE LLOYD!!!!!

Can I get an Amen?

Wed, 01/09/2013 - 16:47 | 3138079 Seasmoke
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Shalom

Wed, 01/09/2013 - 18:05 | 3138516 pragmatic hobo
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No matter, what fucking ass holes.

Thu, 01/10/2013 - 11:26 | 3140565 dunce
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I think that if client 69 not forced Greenberg out with bogus charges that the court just threw out, AIG would not have gotten deep in the weeds with piles of exotic financial junk paper when the govt. mortgage plans all collapsed of their own NPL weight and they would not have needed a giant bailout. Who got them into funny money paper after Greenberg was forced out, did Goldman peddle the worthless CDS to them in the house of cards scheme? Might the court award C V Starr a lien on AIGs future profits or scoop an award out of the US treasury?

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