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AIG Won't Join Lawsuit Against US

Wednesday, January 09, 2013

70 Pine Street was the home of AIG for 33 years. It now houses one tenant and is being converted into a rental apartment building. (Ilya Marritz/WNYC)

Facing a certain backlash from Washington and beyond, American International Group won't join a shareholder lawsuit against the U.S. government.

AIG was legally obligated to consider joining the lawsuit being brought against the government by former AIG head Maurice "Hank" Greenberg, who claims the terms of the $182 billion bailout weren't fair to AIG shareholders.

The prospect of AIG joining the lawsuit had already triggered outrage. Vermont Congressman Peter Welch issued a statement telling AIG: "Don't even think about it." Welch suggested the move would have amounted to "corporate ingratitude and chutzpah."

AIG was rescued from the brink of collapse by the U.S. government at the height of the 2008 financial crisis. The insurance company nearly imploded after making huge bets on mortgage investments that later went wrong.

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