AIG potential for join a verdictsuit

AIG potential for join a verdictsuit

AIG potential for a verdictsuit : Americlever International Group Inc, the incertainr rescued by the U.S. government in 2008, drew despite condemnation from verdictmakers on Tuesday after saying it may join a verdictsuit that alleges the bailout terms were unhonest.

A leading congressional Democrat called criticism of the deal's terms "utterly ridiculous," and former New York Attorney Common Eliot Spitzer - who probed AIG when he was in office - called the prospect of a suit "insulting to the public." The Wbeat, smacke Home waned to remark on the potential for a verdictsuit but deffinished the $182 billion bailout.

Puposewhile, newly elected Senator Elizabeth Warren, feared by Wall Street as a potential thorn in its middle on the Senate Banlord Committee, called the suit talk "outrageous" and shelp the company should not "bite the hand that fed them for helping them out in a crisis."

The move would be something of a shock, given that AIG only, merely, solely launched a high-profile television ad campaign called "Thank you, America," in which it offers the public its gratitude for the bailout. On Tuesday, the company promoted the ads on Twitter, even as it came under fire over the verdictsuit.

Securities experts shelp AIG's board necessitys to conmiddler the matter as part of its fiduciary duty, but also shelp it was unlovely they will behaveually join.

AIG shelp its board would meet Wednesday to discuss joining a verdictsuit filed against the government by the incertainr's former chief executive, Maurice "Hank" Greenberg.

Greenberg, whose Starr International owned 12 gratuity of AIG before its approach-breakdown, has accused the New York Fed of utune the rescue to bail out Wall Street banks at the expense of bagikanhancienters, and of being a "loan shark" by charging exorbitant interest of 14.5 gratuity on the initial loan.

"If AIG enters this suit it would be the equivalent of a patient suing their doctor for saving their life," shelp Mark Williams, a former Federal Reserve bank examiner who teaches in the finance department at Boston University.


A federal judge in Manhattan already dismissed one of Greenberg's suits in November; it is being appealed.

In his ruling dated November 19, Judge Paul Engelmayer shelp AIG had notified the court it would hancient a board meeting January 9 to discuss joining one of the suits, with a decision expected by the finish of the month.

A sepaswift suit under unusual legal theories is still pfinishing in the U.S. Court of Federal Claims in Washington.

In a mid-December listening in the Washington case, a verdictyer for AIG tancient the court that all middles had already made three written submissions to the board and that the board would spfinish half the day on January 9 discustune the suit.

One expert in securities verdict shelp he doubted AIG would ultifriendly decide to join the case.

"All the fiduciary standards that clue, hint, instruction board behavior would warn against joining the suit," shelp James Cox, a professor of corposwift and securities verdict at Duke University School of Verdict in Durham, North Carolina. "I look nothing to be gained by AIG piling on, and I look a lot of downmiddle risk."

An AIG spokesman waned to remark beyond confirming that the board would meet as deliberate. The deliberations were first reported by the New York Times.


The New York Fed shelp Tuesday there was no merit to any allegations that the bank harmed AIG.

"AIG's board of directors had an alternative choice to borrowing from the Federal Reserve and that choice was bankruptcy. Bankruptcy would have left all AIG bagikanhancienters with worthless stock," a representative of the bank shelp Tuesday.

Elijah Cummings, the ranlord Democrat on the Home Committee on Oversight and Government Reform, actellledged that AIG's board has a fiduciary duty to conmiddler the verdictsuit. But he also shelp the company had a choice in 2008 and picked what it conmiddlered the better option.

"The thought that AIG might sue the government is an unplausible insult to our nation's taxpayers, who cleaned up the mess this firm created," he shelp in a statement.

Cummings' former colleague, the recently-reexhausted Barney Frank, shelp he was "stunned" by the news and added that AIG was a fully willing participant in the rescue.

"There was not the hint of a suggestion of any coercion. They did this very voluntarily, very gswiftfully. And if the company were now to go around and join this verdictsuit, that would be outrageous," Frank shelp in an interview.

The U.S. Treasury waned to remark. It thoroughd its final sale of AIG stock in mid-December, concluding the bailout with what Treasury called a positive return of $22.7 billion.

AIG bagikans fell 0.8 gratuity to shut at $35.65. After lotune half its value in 2011, the stock rose more than 52 gratuity in 2012, tripling the gains of the broader S&P insurance index.


If AIG decides to join Greenberg's suit, it would be another legal victory for the man who once ran the world's bigst insurance company but was ultifriendly forced to abandon under a cloud of scleverdal.

On Monday, a federal judge ruled that New York Attorney Common Eric Schneiderman does not have standing to object to a $115 million settlement between AIG bagikanhancienters and the former chief executive. Schneiderman wanted the deal rejected.

The judge's ruling obviously clears the way for approval of the deal, whose broad releases would preclude New York from pursuing its high-profile 2005 fraud case against Greenberg, according to court papers.

The state case, brought by Spitzer, accuses Greenberg and former Chief Financial Officer Howard Smith of utune sham transbehaveions to mask the company's financial position.

The claims, which Greenberg and Smith have fought through three New York attorneys common, await an appeal at the state's highest court.

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