After it became clear that a massive PR storm would follow a decision to join in on a lawsuit to sue the U.S. government, AIG announced yesterday that it would not join the suit filed over the terms of the company’s multi-billion dollar bailout. The company had been considering the move after former CEO Hank Greenberg and his company, Starr International, filed. Greenberg’s company owned 12% of AIG before the $182 billion government bailout that began in 2008. Greenberg claims in the suit that the terms of the bailout were unfair to shareholders and that the Fed charged an excessive rate of interest on the initial loan that was part of the deal.
Greenberg is seeking billions of dollars in damages. What he should be more worried about, perhaps, is hiring a big team of bodyguards to ensure that he escapes the suit with his life. After considering joining the suit, current AIG CEO Bob Benmosche noted, "It is not acceptable socially for AIG to have taken this money and to think we can go back and sue the government."
Indeed, but it appears not to be stopping Greenberg. News of the potential suit by AIG sent waves through the Internet, where Tweets containing "AIG" jumped 50-fold. A group of congressmen led by Peter Welch, D-Vermont, sent a latter to AIG’s chairman on Tuesday, indicating in very blunt terms, "Don’t do it. Don’t even think about it." It couldn’t have been a tough decision in hindsight – the company probably couldn’t even have survived the boycotts it would have had to weather, much less the potential for actual physical violence against executives.
Greenberg is seeking billions of dollars in damages. What he should be more worried about, perhaps, is hiring a big team of bodyguards to ensure that he escapes the suit with his life. After considering joining the suit, current AIG CEO Bob Benmosche noted, "It is not acceptable socially for AIG to have taken this money and to think we can go back and sue the government."
Indeed, but it appears not to be stopping Greenberg. News of the potential suit by AIG sent waves through the Internet, where Tweets containing "AIG" jumped 50-fold. A group of congressmen led by Peter Welch, D-Vermont, sent a latter to AIG’s chairman on Tuesday, indicating in very blunt terms, "Don’t do it. Don’t even think about it." It couldn’t have been a tough decision in hindsight – the company probably couldn’t even have survived the boycotts it would have had to weather, much less the potential for actual physical violence against executives.
