AIG wisely backs out

[Stardreamer]

As public fumes, AIG says will not sue U.S. over bailout

Facing anger from Congress and the American people, AIG Inc said on Wednesday it would not sue the U.S. government over terms of the company's multi-billion dollar bailout.


Insurer American International Group had been weighing whether to join a lawsuit filed by its former Chief Executive Hank Greenberg and his company Starr International, which owned 12 percent of AIG before its $182 billion rescue that started in 2008.


Greenberg claims the rescue was unfair to shareholders and that the Federal Reserve Bank of New York charged an excessive interest rate on its initial loan. He is seeking billions of dollars in damages.

As word of this potential lawsuit leaked out this week, virtual torch and pitchfork bearing mobs descended on AIG on the Internet and media. The company is now saying it wasn't really thinking of joining the lawsuit but was just doing due diligence in reviewing the request. Right.

[Just_Believe18]

It just goes to show that the banks and mortgage industry have learned nothing from their mistake.

[JayHawk]

While I have no pity for that industry and feel as if we are right back where we started with ZERO significant changes after such a world altering event as the mortgage crisis, the sad part is in our legal system the lawsuit may bear some merit.

AIG is wise to step out however. They can benefit if the judgement is made that the government owes these fucking vulture-istic asshats money for how they were saved. To me this is the same thing as a drowning collision as sea victim suing the Coast Guard because they hurt their back while pulling them from certain death.

[frankfrank]

And they never WILL learn from their mistakes. I forgot what numbers I heard, but it was SOMETHING like this:

Before the crisis, the Top 5 banks controlled 36% of the banking economy.
Now, the Top 5 banks control 43% of the banking economy.

It might have instead been 6 banks or 4 banks...and it might have been 34 or 37% and 41 or 44%, or something like that - but these are CLOSE.

These big banks know it is an IRONCLAD AND ABSOLUTE GUARANTEE that if they totally fuck up and need another bailout, the government will THROW MONEY AT THEM again. "HERE, TAKE IT, GODDAMMIT!!! - AND WE'RE THROWING IN ANOTHER $50 BILLION to make sure you don't fail."

This is a true bipartisan flaw in this political system, and that's a huge understatement.

[White Eagle]

And their commercial thanked the taxpayers for the bailout. Right!