The Straits Times
Published on Jan 09, 2013

AIG may join bailout lawsuit against US government


NEW YORK/WASHINGTON (REUTERS) - American International Group Inc, the insurer rescued by the United States (US) government in 2008 with a bailout that ultimately totaled US$182 billion (S$224 billion), may now join a lawsuit against the government alleging the terms of the deal were unfair, the company said on Tuesday.

Negative reaction was swift. A leading congressional Democrat called criticism of the deal's terms "utterly ridiculous", and former New York Attorney General Eliot Spitzer - who probed AIG when he was in office - called the prospect of a suit "insulting to the public". The move would be something of a shock, given that AIG just launched a high-profile television ad campaign called "Thank you, America", in which it offers the public its gratitude for the bailout.

On Tuesday, the company promoted the ads again on Twitter, even as it came under fire over the lawsuit.

AIG said its board would meet Wednesday to discuss joining a lawsuit filed against the government by the insurer's former chief executive, Mr Maurice "Hank" Greenberg.