Former AIG CEO to feds: Oh, boo hoo! You didn't give me enough money!
Examining the Terms of A.I.G.’s Bailout
By PETER EAVIS, NYT
The American International Group's former chief executive, Maurice R. Greenberg, is contending in a lawsuit that the government treated the company's shareholders too harshly when carrying out its 2008 rescue of the insurance giant. But a closer look at the $182 billion rescue suggests a different outcome.
Soon after the bailout, the Treasury Department substantially softened the terms of its support. This lenience made life a lot easier for A.I.G. - and arguably benefited shareholders like Mr. Greenberg.
A.I.G. is weighing whether to join the lawsuit, filed by Mr. Greenberg's investment firm, Starr International Company. A.I.G. most likely will not end up joining forces with Mr. Greenberg, but, as a duty to shareholders, it has to at least give his suit a thorough assessment.
One of Starr International's major arguments is that A.I.G.'s bailout terms were far tougher than those granted to other large financial firms. But A.I.G.'s cash needs and internal failings were in many ways far more serious than those of other institutions. In fact, the company was in such dire straits after the rescue that the government chose to loosen the terms of its aid.
(More here.)
By PETER EAVIS, NYT
The American International Group's former chief executive, Maurice R. Greenberg, is contending in a lawsuit that the government treated the company's shareholders too harshly when carrying out its 2008 rescue of the insurance giant. But a closer look at the $182 billion rescue suggests a different outcome.
Soon after the bailout, the Treasury Department substantially softened the terms of its support. This lenience made life a lot easier for A.I.G. - and arguably benefited shareholders like Mr. Greenberg.
A.I.G. is weighing whether to join the lawsuit, filed by Mr. Greenberg's investment firm, Starr International Company. A.I.G. most likely will not end up joining forces with Mr. Greenberg, but, as a duty to shareholders, it has to at least give his suit a thorough assessment.
One of Starr International's major arguments is that A.I.G.'s bailout terms were far tougher than those granted to other large financial firms. But A.I.G.'s cash needs and internal failings were in many ways far more serious than those of other institutions. In fact, the company was in such dire straits after the rescue that the government chose to loosen the terms of its aid.
(More here.)
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