Today the board of American International Group, Inc. (AIG) is considering whether to join a lawsuit filed by one of its shareholders against the federal government. The suit alleges that the Federal Reserve Bank of New York charged an interest rate that was excessive. Meanwhile the public rages on about the idea that AIG could join in the suit.
American International Group, Inc. (NYSE:AIG)’s board of directors met today to consider taking on the federal government in court over the terms of AIG’s bailout. Former American International Group, Inc. (NYSE:AIG) CEO Hank Greenberg and his current company Starr International, filed the lawsuit saying that the bailout was not fair to shareholders.
Starr International owned 12 percent of AIG before the bailout. Reuters reports that Greenberg claims New York’s Federal Reserve charged “an excessive interest rate” and is now seeking billions in damages. Now AIG’s board of directors is considering whether the company should join the lawsuit.
The public has railed against the idea that American International Group, Inc. (NYSE:AIG) would even consider suing the government for bailing it out. Topsy Analytics said that the number of times AIG was mentioned on Twitter increased more than 50 times on Tuesday.
One of those to take to Twitter to vent his anger over the lawsuit is former presidential advisor Austan Goolsbee. Among his tweets was this comment: “Dear AIG, Hi, I’m one of the 300m Americans whose $ saved you. I think I speak for all of us (incl your moms) when I say GO SCREW YOURSELVES.”
The public outrage over the possibility of AIG joining the lawsuit was similar to the outcry in 2008 when AIG received its bailout money. Reuters reported that employees of AIG hid their ID badges so others wouldn’t know they worked there. Their families were even threatened after news of the executive bonuses came out after the financial rescue.
AIG also stepped into the Twitter fray today, saying that it was “legally obligated” to consider joining the lawsuit. We should find out by the end of the month if AIG will indeed take part in the lawsuit filed by Greenberg and his company.