USA TODAY: … Starr International, the investment firm of former AIG CEO Maurice Greenberg, 89, alleges in the lawsuit that the government broke the law by taking control of AIG as part of the bailout…
Government lawyers deny the Court of Federal Claims allegations. They contend Starr lacks legal standing to bring the case on behalf of AIG shareholders. AIG itself — which has since repaid the bailout, emerged from government control and climbed back to financial success — pointedly refused to join the Starr lawsuit in a 2013 rebuff.
“To date, AIG has returned $205 billion to America, including a profit of $22.7 billion,” company Chairman Robert Miller said at the time. “We continue to thank America for its support.” … (more)
EDITOR: At the time of government intervention, it was widely assumed that AIG’s failure would cost the public a huge amount of money, perhaps fifty to a hundred billion dollars. What a pleasat surprise that a profit ultimately was made. Government intervention turned the tide of the panic. Had we continued fiscal stimulus for an additional year, we would have done a lot better than the subsequent years of economic growth at a snail’s pace.
