Washington • The giant insurer American International Group is considering a step that would remind America why everyone got so mad at the company in the first place.
The board of AIG is weighing whether to join a $25 billion lawsuit against the U.S. government for forcing unacceptably high losses on shareholders in its bailout. The argument is that this violated the Fifth Amendment's prohibition on the government seizing private property without just compensation. There were howls of outcry in Washington, following a report in The New York Times late Monday on the deliberations and confirmation by AIG in a statement late Tuesday.
"Beginning in 2008, the federal government poured billions of dollars into AIG to save it from bankruptcy," said Sen. Elizabeth Warren, D-Mass., a longtime AIG critic, in a statement. "AIG's reckless bets nearly crashed our entire economy. Taxpayers across this country saved AIG from ruin, and it would be outrageous for this company to turn around and sue the federal government because they think the deal wasn't generous enough."