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