When the economy went into a tailspin in late 2008, one of the biggest contributors to the crisis was insurance conglomerate AIG. The Troubled Asset Relief Program (TARP) loaned the failing AIG an astronomical $182 billion to enable it to stay in business. The terms of the taxpayer loan gave the Government roughly 92 percent stock ownership of the company, and charged a stiff interest on the repayment. The loan's been paid back, and AIG has even started running ads thanking taxpayers for the bailout.
Now, AIG is considering joining a 2011 lawsuit filed by its former chairman, Maurice "The Chiseler" Greenberg, who claims that the Government owes AIG stockholders (cough cough including The Chiseler) $25 billion in overpayment for the loan, claiming the Government charged too much interest for the loan. Let's not forget that AIG wouldn't exist today if the Government had refused the loan. It's also worth remembering that AIG executives pocketed seven-figure bonuses after they tanked the company and came to the Government for a bailout. As Sen. Elizabeth Warren commented:
“It would be outrageous for this company to turn around and sue the federal government because they think the deal wasn’t generous enough… AIG should thank American taxpayers for their help, not bite the hand that fed them for helping them out in a crisis.”Indeed, this raises the question again of why weren't the executives of this and other companies prosecuted for fraud and financial crimes? Maybe those should be the next cases in court, and not this outrageous lawsuit.
UPDATE: Looks like the looming PR disaster convinced the Masters of the Universe at AIG not to join the suit.
