Wednesday, January 9

Senator Elizabeth Warren's sharp criticism for AIG

AIG is considering joining a $25 billion shareholder lawsuit against the federal government, claiming that the government rescue "deprived shareholders of tens of billions of dollars and violated the Fifth Amendment," which prohibits the taking of private property for "public use, without just compensation."

Senator Warren's response:
"Beginning in 2008, the federal government poured billions of dollars into AIG to save it from bankruptcy. AIG’s reckless bets nearly crashed our entire economy. Taxpayers across this country saved AIG from ruin, and it would be outrageous for this company to turn around and sue the federal government because they think the deal wasn’t generous enough. Even today, the government provides an ongoing, stealth bailout, propping up AIG with special tax breaks — tax breaks that Congress should stop. AIG should thank American taxpayers for their help, not bite the hand that fed them for helping them out in a crisis."
Senator Elizabeth Warren gears up (Washington Post)

Further reading: Rescued by a Bailout, A.I.G. May Sue Its Savior (New York Times)