Tags: AIG, Fifth Amendment violations, Hank Greenberg, Lawsuits, Maurice Greenberg, Starr International Co.
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]