AIG has been warned by members of Congress against joining a lawsuit filed by its shareholders against the federal government in connection with the terms of the $182 billion bailout provided to the insurance giant in 2008.
In a letter addressed to Robert Miller, chairman of American International Group, Inc. (NYSE:AIG) Democratic Representatives, Michael Capuano, Luis Gutierrez, and Peter Welch wrote, “”Don’t do it. Don’t even think about it.”
According to the legislators, “AIG became the poster company for Wall Street greed, fiscal mismanagement, and executive bonuses — the taxpayer and economy be damned. Now, AIG apparently seeks to become the poster company for corporate ingratitude and chutzpah.”
They pointed out that taxpayers are still furious over the decision of the federal government to helped a company that was responsible for its own failure due to its misconduct. The Congressmen stated, “Don’t rub salt in the wounds with yet another reckless decision that is on par with the reckless decisions that led to the bailout in the first place.”
Senator Elizabeth Warren of Massachusetts expressed her criticism against American International Group Inc (NYSE:AIG) for considering the idea that of joining a lawsuit against the government.
In a statement, Warren said, “Beginning in 2008, the federal government poured billions of dollars into AIG to save it from bankruptcy. AIG’s reckless bets nearly crashed our entire economy. Taxpayers across this country saved AIG from ruin, and it would be outrageous for this company to turn around and sue the federal government because they think the deal wasn’t generous enough.”
The Senator also pointed out that American International Group, Inc. (NYSE:AIG) is still receiving an ongoing “stealth bailout” through special tax breaks to support the insurance giant. Warren said, AIG should thank American taxpayers for their help, not bite the hand that fed them for helping them out in a crisis.” According to her, Congress should stop the tax breaks.
We recently reported that the board of directors of American International Group, Inc. (NYSE:AIG) is scheduled to meet on Wednesday, to discuss whether the insurance giant will join a $25 billion lawsuit against the government, which was filed by former AIG CEO, Maurice Greenberg, in 2011.