Remember September 2008? Remember how American International Group was doing in September 2008? Kind of not so hot? Maybe needed the government to front it some cash to the tune of $85 billion? Maybe needed even more money after that, even though they swore they just needed that one hit, just to get them by? Maybe would’ve been- how to say this?- fucked, if not thrown a bone? Well Hank Greenberg’s been thinking about September 2008, for a while now, and what he’s concluded is that as an AIG shareholder, he was screwed, big time. And, the window of opportunity for apologies being long closed, he figures the only way he can be made to feel better about the situation is for the US to cough up $25 billion. At least.

Three years after the federal takeover of American International Group Inc., longtime former Chief Executive Maurice R. “Hank” Greenberg is launching a broad legal assault that paints the government’s move as unconstitutional. Starr International Co., a firm headed by Mr. Greenberg that was AIG’s largest shareholder at the time of the 2008 government rescue, filed a lawsuit Monday in the U.S. Court of Federal Claims. The action accuses the U.S. government of using the giant insurer as a vehicle to ship cash to AIG’s trading partners. The court has jurisdiction in cases involving claims against the federal government.

The suit alleges that by getting a nearly 80% stake in AIG in exchange for providing tens of billions of dollars in aid, the government took valuable property from Starr and other AIG shareholders in violation of the Fifth Amendment, which says that private property can’t be taken for “public use, without just compensation.” Starr seeks damages for itself and other shareholders of at least $25 billion. AIG is listed as a “nominal defendant” in the suit, which also seeks damages for the company…”The Government’s actions were ostensibly designed to protect the United States economy and rescue the country’s financial system,” the suit says. “Although this might be a laudable goal, as a matter of basic law, the ends could not and did not justify the unlawful means employed by the Government to achieve that goal.”

Anyway, chop-chop. Snowflake wants to do Christmas in Gstaad, and the presidential suite don’t come cheap.

U.S. Sued for $25 Billion Over AIG Takeover [WSJ]

Comments (36)

  1. Posted by Dr_Zaius | November 21, 2011 at 12:06 PM

    "dammit Hank! people were just starting to forget about me, you dick!"

    - Joe Cassano

  2. Posted by Texashedge | November 21, 2011 at 12:08 PM

    I've got a watch that tells time in Gstaad, but in Philadelphia, it's only worth fifty bucks.

  3. Posted by Turd | November 21, 2011 at 12:11 PM

    Just die already.

  4. Posted by Poll | November 21, 2011 at 12:16 PM

    If you had to:

    Snowflake or Wilbur?

  5. Posted by uɐɟ ʇʇɐɯ ɐ ʇou | November 21, 2011 at 12:16 PM

    clearly Hank is off his meds

  6. Posted by HungryIntern | November 21, 2011 at 12:19 PM

    Suing the government because they did not properly compensate you for a company that you destroyed and sent into BK is the NKI.

  7. Posted by Guest | November 21, 2011 at 12:20 PM

    #1percentproblems

  8. Posted by D. Kneale | November 21, 2011 at 12:22 PM

    I won't even dignify that question with a response.

  9. Posted by leveriched finance | November 21, 2011 at 12:23 PM

    Yea! Sue the government for screwing taxpayers over! 99% strong!
    - OWS protestor that clearly understands whats going on

  10. Posted by Louis Winthorpe III | November 21, 2011 at 12:23 PM

    Just give me the money.

  11. Posted by HighFrequencyHater | November 21, 2011 at 12:27 PM

    We've consulted with AIG-FP quant team to determine the current stock price is the best way to value the plaintiff claims at $25BN

    ~AIG Legal

  12. Posted by Poll | November 21, 2011 at 12:29 PM

    Your comment would be a lot funnier if it wasn't left on a story about which the OWS people could actually have legitimate beef, i.e. a deluded member of the 1% whose actions nearly took down the global financial system who is now demanding more. Keep winning it, though.

  13. Posted by guest | November 21, 2011 at 12:30 PM

    You're a moron.

    - financial services employee who feels the need to point out when both the protesters and people he works alongside are demonstrating stupidity

  14. Posted by Guest | November 21, 2011 at 12:31 PM

    Cocaine is one hell of a drug!

  15. Posted by PermaGuestII | November 21, 2011 at 12:31 PM

    How much for the gun?

  16. Posted by Lloyd | November 21, 2011 at 12:35 PM

    That's assuming we paid off the CDS, which you and I both know we wouldn't have done.

  17. Posted by IgnorantBastards | November 21, 2011 at 12:36 PM

    Is he represented by Richard Fish, John Cage and Ally Mcbeal?

  18. Posted by Ace Ventura | November 21, 2011 at 12:36 PM

    Nice cat.

  19. Posted by cut to bone | November 21, 2011 at 12:40 PM

    I'd eat the dog first

  20. Posted by the stern bear | November 21, 2011 at 12:50 PM

    Hanky Panky is just so cute when he's in a huff.

  21. Posted by Guest | November 21, 2011 at 12:56 PM

    THanks for nothing…

  22. Posted by AIG Quant | November 21, 2011 at 12:56 PM

    I like his chances of winning.

  23. Posted by Ladd Mann | November 21, 2011 at 1:11 PM

    Hank, Hope they don't remember that you are a thief ! You looted AIG and exited very rich.

  24. Posted by Maria | November 21, 2011 at 1:27 PM

    Only problem with your case, Hank, is that you asked for the bailout-
    http://www.insurancejournal.com/news/national/200...

  25. Posted by early_hominid | November 21, 2011 at 1:32 PM

    You must be one busy motherfucker.

  26. Posted by IgnorantBastards | November 21, 2011 at 1:38 PM

    what s the probability of first to default in a AAA cdo basket?

  27. Posted by Guest26 | November 21, 2011 at 1:42 PM

    Eminent Domain is a motherfucker, isn't it Hank?

    -Susette Kelo

  28. Posted by hankey pankey | November 21, 2011 at 2:50 PM

    i need to feed my precious dog, fluffy. she requires meals that are embedded with diamonds and gold.

  29. Posted by Danker_Banker | November 21, 2011 at 3:07 PM

    Soiling your Depends in a room full of expensive lawyers is the NKI

  30. Posted by Guest | November 21, 2011 at 3:12 PM

    Agreed.

    - P. Krugman

  31. Posted by Elliot Spits | November 21, 2011 at 3:31 PM

    3 years after he was forced out

  32. Posted by TheodoreBallgamePhD | November 21, 2011 at 4:10 PM

    Its THE premier sports watch of the 80s.

  33. Posted by AIG Quant | November 21, 2011 at 4:47 PM

    Are you commenting from Australiar?

  34. Posted by Guest | November 21, 2011 at 6:59 PM

    The probability is -18%.

    -AIG quant (emeritus)

  35. Posted by Myopia | November 22, 2011 at 5:28 AM

    In the UK there was a documentary shown a couple of days ago about the rise and fall of Eliot Spitzer. This guy featured heavily in his downfall. At one point Gangrene said the whole 2008 crash was Spitzers fault.. if he hadnt investigated AIG none of this would have happened.
    Hes not completely wrong, if you dont look for financial fraud you wont find any. Eventually when he popped his cloggs and all the flunkies started to do thier jobs they would have found the unusual structures and the bailout would have been much worse.

    This guys is nuts, and not the dogs..

  36. Posted by kendrawolf | November 26, 2011 at 4:45 AM

    The Wall Street Journal says that a former Wall Street CEO is suing the federal government. Greenberg and his current business Starr International has filed a $25 billion discrimination case in Washington, D.C., that asserts that the government did not have the right to take over the failing company, but should have floated bailout funds instead. Read more here: https://personalmoneynetwork.com/moneyblog/2011/1...

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