Former AIG CEO Sues Over AIG Bailout

Nov. 22, 2011 – To a universal chorus of columnists and bloggers calling him a greedy pig, the man who turned insurance giant AIG into a threat to help destroy the world’s economy initiated suit against the United States for “at least $25 billion.”

During the height of the world financial meltdown in September and October, 2008, the U.S. government sank $182.3 billion into AIG. This was the largest single-company bailout in American history. The complaint Maurice R. “Hank” Greenberg has in his lawsuit is that none of those billions went to him.

It has long been argued that the main incentive behind this bailout was to funnel money to the primary creditors of AIG. These international banks, including Goldman Sachs and Societe Generale, stood to take huge losses from investing in AIG, which had placed false valuations on the assets they invested in. This lawsuit does not address this issue.

Greenberg led a group who held stock in AIG when the government stepped in to prevent AIG’s implosion to help take down the global financial system. When the New York Fed extended the loan, they took a majority ownership. Greenberg says his own major holdings should have been paid for.

“The entire (AIG) disaster is directly traceable back to the arrogance and mismanagement of Hank Greenberg,” the Daily Kos wrote.

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1 comment for “Former AIG CEO Sues Over AIG Bailout

  1. April 7, 2012 at 2:48 pm

    let’s check the fucking logic here busnoes paid to fucking pukes who flew their outfit into the ground, did not have enough money to fund their bonus let alone keep their fucking dumb ass employed .so far so good go to the taxpayers for a bailout with hat in hand, get some money pay out busnoes issued for subpar work and keep the same fuckheads employed that fucked it up in the first place fucking way to go!!!Just checking logic here kids..if you fuck up, you need to be fired and consider anouther line of work or at least not ask for the taxpayers to enable your fucking bad habit..they should have streamlined the operation like where the fuck were the dildoes going to the equally bankrupt competition? We don’t hire wholesale from firms that went tits up..there is usually a reason that happened..generally it is the leadership and the managers..pretty fucking lame ass logic if you aask me. But that is just me, we work in a performance oriented industry..when we go tits up, they pick our bones and go on. There is absolutely no justification for the bonuses..if they were gonna leave because they fucked up and couldn’t get rewarded..they can play hell finding another cush job in an industry that is going to be scrutinized every step of the way and is the poster child for government reform of industry. ugh that would be promoting dumber over just dumb

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