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 Washington's jaw drops at possibility of AIG lawsuit 
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Post Washington's jaw drops at possibility of AIG lawsuit
Remember when AIG took a $182 billion bailout only to turn around and hand out seven-figure bonuses to the same guys who tanked their company?

Grab the pitchforks — it gets better.

Now the insurance organization might join a lawsuit against the U.S. government over the terms of the bailout — saying the deal that saved the company cheated shareholders.

Treasury Secretary Timothy Geithner — who faced calls for his firing over the AIG bailout — and Federal Reserve Chairman Ben Bernanke are furious, according to one Democratic lawyer. Other officials inside the agencies were angered by the news, too, sources in the department told POLITICO.

Neil Barofsky, former inspector general for the Wall Street bailout said AIG’s possible lawsuit would be a “giant middle finger to the taxpayer.”

One of President Barack Obama’s top aides agreed: “Definition of Chutzpah: AIG, saved by taxpayers, contemplating suit,” David Axelrod tweeted.

Many Treasury and Fed insiders have long believed the terms of the AIG bailout — which only wrapped in recent weeks — were far too generous, not too punitive as the lawsuit is expected to contend.

This week, the AIG board will consider whether to join a $25 billion lawsuit over whether the terms of the bailout were unfair to shareholders, who claim they were deprived of billions of dollars.

AIG began airing ads in recent weeks that say "thank you" to Americans for the rescue — a sentiment AIG's CEO Robert H. Benmosche assured is sincere in a statement the company released Tuesday night.

“AIG has paid back its debt to America with a profit, and we mean it when we say thank you to the American people,” said Benmosche.

He went on to explain that the company has no choice but to consider suing the government. “At the same time, the board of directors has fiduciary and legal obligations to the company and its shareholders to consider the demand served on us and respond in a fair, appropriate, and timely manner. Tomorrow’s board meeting is about listening to all of the parties involved and gaining a thorough understanding of the issues. We anticipate making a decision in the next several weeks.”

The Treasury and the Fed haven’t released official responses to the news of the potential lawsuit, first reported by The New York Times.

One former administration official, who worked on the AIG bailout, was in a state of disbelief.

“I can’t imagine that they will actually do it. Because whatever recovery they might possibly gain would be totally swamped by the enormous hit to their reputation,” the former official said. “What I don’t understand is why they have not ruled it out already. They have had plenty of opportunity to do so.”

snip

Read more: http://www.politico.com/story/2013/01/washingtons-jaw-drops-at-possibility-of-aig-lawsuit-85924.html#ixzz2HUfoudjk

We have officially entered an alternate reality now haven't we?

First Alex Jones, then KBR and now AIG. :yamon

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Wed Jan 09, 2013 8:50 am
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Post Re: Washington's jaw drops at possibility of AIG lawsuit
Bluebonnet wrote:
....
whatever recovery they might possibly gain would be totally swamped by the enormous hit to their reputation[/color],” the former official said. “What I don’t understand is why they have not ruled it out already. They have had plenty of opportunity to do so.”
....

Read more: http://www.politico.com/story/2013/01/washingtons-jaw-drops-at-possibility-of-aig-lawsuit-85924.html#ixzz2HUfoudjk

We have officially entered an alternate reality now haven't we?

First Alex Jones, then KBR and now AIG. :yamon


The other side of the mirror from the 2012 Qlimax


:elephant :banana :brockoli

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Wed Jan 09, 2013 10:20 am
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Post Re: Washington's jaw drops at possibility of AIG lawsuit
AIG Board Won't Sue Over Terms Of Rescue

By LESLIE SCISM And JOANN S. LUBLIN

American International Group Inc. decided Wednesday to pass on a shareholder lawsuit that accuses the U.S. government of unfairly burdening the company during its financial-crisis rescue, in a move that could snuff out a brewing controversy for the insurer. :crylaugh

The insurer's directors unanimously rejected any participation in the suit, partly to avoid reputational harm that they feared could result from signing on, according to a person familiar with the company.

"The Board's decision today was about continuing to move this company forward, not backward," said Chief Executive Robert Benmosche in a memo to employees. :roll

The suit is being pursued by AIG's former leader, 87-year-old Maurice R. "Hank" Greenberg, through a company he now leads that once was a large AIG shareholder, Starr International Co. The suit contends the U.S. government extracted too-onerous terms in its rescue package for AIG, and seeks about $25 billion from the government. A federal claims court in Washington ruled in July that the case could proceed, after the U.S. government sought to dismiss it. :crylaugh

In declining to support the litigation, AIG faces two main risks: missing out on any upside if the suit succeeds, and litigation over its decision. By conducting what directors saw as a robust review process, AIG was attempting to insulate itself from any challenges.

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

Even as Wednesday's board meeting was under way, New York Department of Financial Services Superintendent Benjamin Lawsky called to get a message to Mr. Benmosche about his concerns, a person familiar with the call said. Mr. Lawsky recommended the company not join the suit, because he believed it would cause reputational harm to AIG that could affect the business and preclude it from getting federal aid again, the person said. Mr. Lawsky's office is a key regulator of AIG's insurance businesses. Gee, YA THINK?

It isn't clear whether the call had any impact. An AIG spokesman had no immediate comment. :spit

snip

Read more here: http://online.wsj.com/article/SB10001424127887323442804578231660629820142.html

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Thu Jan 10, 2013 8:30 am
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Post Re: Washington's jaw drops at possibility of AIG lawsuit
The us has officially gone insane.

These greedy buggers are allowed to sue the people that bailed them out who allowed them to survive another day, this just aint right folks.

If they get awarded anything I say its high time we start hanging these people one by one in a very public way.

Its the only way we can stop these nasty parasites.

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Thu Jan 10, 2013 5:40 pm
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Post Re: Washington's jaw drops at possibility of AIG lawsuit
L, there are times when I sit here and laugh. There are times I just go :awe . And there are times I cry.

I feel like I am out of step with my country and some folks in my own family.

I just don't get it, I really don't.

How in the world would an insurance company that nearly went belly up, was rescued by American taxpayers (and set off the whole Tea Party thing), is running ads on US TV right now thanking American taxpayers, ever, ever, ever, ever consider suing to recoup "losses" for it's shareholders?


If I had a world of my own, everything would be nonsense. Nothing would be what it is because everything would be what it isn't. And contrary-wise; what it is it wouldn't be, and what it wouldn't be, it would. You see?

Alice

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Fri Jan 11, 2013 8:15 am
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