AIG Board Won’t Sue U.S. Government Over Bailout

The AIG board of directors will not follow or endorse a lawsuit against the U.S. government over financial assistance received during the 2008 financial crisis. The lawsuit is being brought by former AIG CEO Maurice Greenberg who claims that the U.S. government’s bailout was against shareholder interests.
AIG Board Won’t Sue U.S. Government Over Bailout
A file photo shows the logo of American International Group Inc. outside its office in the lower Manhattan area of New York. Stan Honda/AFP/Getty Images
Valentin Schmid
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The board of directors of AIG announced Jan. 9 that it will not participate in a lawsuit seeking $25 billion in compensation from the U.S. government for damaging shareholder interest in the 2008 bailout.

“In considering and ultimately refusing the demand before us, the Board of Directors properly and fully executed our fiduciary and legal obligations to AIG and its shareholders,” said Robert Miller, the AIG chairman of the board of directors.

The lawsuit is being brought forward by Starr International, an insurance company previously controlled by Cornelius Vander Starr who also founded AIG. The current star CEO Maurice Greenberg, who ran AIG until 2005, is representing the company, which still holds 9 percent of AIG stock.

Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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