AIG Won't Join Lawsuit Against Feds
Under loads of pressure to lick its master's hand
The board of AIG decided Wednesday against joining a shareholder lawsuit against taxpayers which challenges the terms of the bailout that saved the insurer from bankruptcy in 2008.
The board did not detail the reasons for the decision, saying it will make that clear in court filings in the coming weeks. But when reports surfaced Tuesday that it was even considering joining the suit, it sparked widespread outrage against the company.
The $25 billion suit was brought in 2011 by shareholders led by former AIG CEO Maurice "Hank" Greenberg. It claims that the high interest rates and 92% equity stake that AIG (AIG, Fortune 500) was forced to give to the federal government in return for the $182 billion bailout were unfair to shareholders.