No more bailouts!
After paying back its $182 billion bailout, the American International Group is now considering whether to sue the government agencies that rescued it during the financial crisis. A.I.G.’s board is meeting on Wednesday to weigh joining a $25 billion lawsuit filed by Maurice R. Greenberg, the company’s former chief executive, claiming that the bailout cheated shareholders, DealBook’s Ben Protess and Michael J. de la Merced report.
The board members owe a duty to shareholders to consider the lawsuit, which could put the company in line for a potential payout. The lawsuit does not argue that the government’s help was not needed, but rather claims that the onerous nature of the rescue “deprived shareholders of tens of billions of dollars and violated the Fifth Amendment, which prohibits the taking of private property for ‘public use, without just compensation,’” DealBook writes.