AIG confirmed to Reuters today that it is considering joining a shareholder lawsuit against the federal government over the bailout, on the grounds that it deprived shareholders of billions of dollars.
The New York Times reported Monday night:
The board of A.I.G. will meet on Wednesday to consider joining a $ 25 billion shareholder lawsuit against the government, court records show. The lawsuit does not argue that government help was not needed. It contends that the onerous nature of the rescue — the taking of what became a 92 percent stake in the company, the deal’s high interest rates and the funneling of billions to the insurer’s Wall Street clients — deprived shareholders of tens of billions of dollars and violated the Fifth Amendment, which prohibits the taking of private property for “public use, without just compensation.”
AIG may sue the government for bailing it out
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