AIG Takeover: US sued for $25 billion

NEW YORK:

A company run by former American International Group Inc Chief Executive Maurice “Hank” Greenberg sued the United States government for $25 billion, calling the 2008 US takeover of the insurer unconstitutional.

The lawsuit marks an unusual effort to force the government to pay shareholders, who have seen AIG’s stock price tumble 98 per cent since the middle of 2007, when the insurer’s risky bets on mortgage debt through credit default swaps began to falter. Greenberg’s company filed a separate, related lawsuit against the Federal Reserve Bank of New York.

Published in The Express Tribune, November 22^nd, 2011.