AIG board weighing joining suit against US


Associated Press

Posted on January 9, 2013 at 7:30 AM

NEW YORK (AP) — American International Group Inc.'s board today will take up whether to join or try to block a shareholder lawsuit against the federal government over the insurer's $182 billion bailout by the government.

Starr International Co. Inc. -- the investment firm of former AIG CEO Maurice "Hank" Greenberg -- filed the lawsuit on behalf of the firm and AIG shareholders. The complaint asserts the government didn't provide shareholders just compensation when it took a nearly 80 percent stake in the insurer as part of the bailout.

AIG says by law its board of directors must consider the matter. A decision from the company could come by the end of the month.

The possibility the company could join the suit has already sparked a response from lawmakers. Massachusetts Congressman Michael Capuano and Vermont Congressman Peter Welch have sent the company a letter warning against the move, calling it the height of corporate ingratitude.

%@AP Links

026-w-35-(Jerry Bodlander, AP correspondent, with White House Press Secretary Jay Carney)--The board of directors of insurance giant AIG is deciding whether to become party to a lawsuit against the government. AP correspondent Jerry Bodlander reports. (9 Jan 2013)

<<CUT *026 (01/09/13)>> 00:35

054-a-14-(White House Press Secretary Jay Carney, at briefing yesterday)-"Wall Street reform"-White House Press Secretary Jay Carney says AIG's situation is a perfect reason why reforms were necessary. (9 Jan 2013)

<<CUT *054 (01/09/13)>> 00:14 "Wall Street reform"

053-a-12-(White House Press Secretary Jay Carney, at briefing yesterday)-"and finacial system"-White House Press Secretary Jay Carney says the country couldn't afford to have AIG go under. (9 Jan 2013)

<<CUT *053 (01/09/13)>> 00:12 "and finacial system"