Talk About Brass Balls--Former AIG CEO Suing Treasury and Fed Over AIG Bailout

[kpete]

Morning folks.

This story of AIG's secret stash of bonds is staggering to the imagination. That they could keep such a large amount off the books and then use annual interest that those bonds earned totally at the discretion of the CEO. They only came to light when the Feds said they had to have some sort of collateral for the $60 billion about to be given in the bailout. Greenberg is now suing the Feds for the bailout. Talk about brass balls.



Former AIG CEO Suing Treasury and Fed Over AIG Bailout

Hubris knows no bounds. AIG’s former CEO Hank Greenberg, who was a significant shareholder of AIG stock via C.W. Starr (which was basically an executive enrichment vehicle) is suing the Treasury and Fed over its rescue of AIG. He has hired litigation heavyweight David Boies, who famously made Microsoft CEO Bill Gates squirm when he put him on the stand in the Microsoft antitrust case.

based on the report from Gretchen Morgenson, the argument seems to be that AIG got less good terms that Citigroup did, ergo the bailout “discriminated” against AIG.

Story Here:
http://www.nytimes.com/2011/11/22/business/greenberg-sues-us-over-aig-takeover.html?_r=2&ref=business
http://www.nakedcapitalism.com/2011/11/former-aig-ceo-suing-treasury-and-fed-over-aig-bailout.html

[mwooldri]

1. Let's hope Mr. Boies is as successful here as he was in SCO vs. Novell. nt