American International Group (AIG) CEO Robert Benmosche today said that former AIG head Maurice "Hank" Greenberg would continue his lawsuit against the U.S. over the AIG bailout. However, Benmosche made clear in an interview today on CNBC's Maria Bartiromo that AIG has decided to not join the lawsuit. "We're a company you have to trust; without the government we wouldn't be as strong," Benmosche said and added that shareholders would be better off to look ahead.
In the face of a public relations disaster, AIG has decided to move forward and not joinin Starr International, a company controlled by "Hank" Greenberg, in the lawsuit. AIG said that the board was obligated to carry out its legal and fiduciary duty to consider joining Starr International's suits before making its decision.
"America invested in 62,000 AIG employees, and we kept our promise to rebuild this great company, repay every dollar America invested in us, and deliver a profit to those who put their trust in us," Chairman Steve Miller said in a statement after its board meeting. AIG said it would not pursue Starr International's claims nor would it allow Starr International to pursue them on AIG's behalf, which sets the stage for a fresh legal fight between Greenberg and the company.
AIG has been running a grateful sixty-second television ad spot, which thanks the American people for the TARP funding totaling $122.3 billion dollars from the American taxpayers, that ultimately saved AIG from total extinction. The AIG ad is titled, “Thank you America.”
During the ad, the AIG actors repeatedly says "thank you" America for its help in saving the company. The ad even mentions that the American taxpayer netted a "$22 billion dollar profit" from the transaction and for that AIG once again says "thank you."
It appears that by dropping the lawsuit, AIG really is thankful.
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John is the author of an award-winning book, the 2010 Winner of the USA National Best Book award for African American studies, published by The Elevator Group Mr. and Mrs. Grassroots: How Barack Obama, Two Bookstore Owners, and 300 Volunteers did it. Also available an eBook on Amazon. John is also a member of the Society of Midland Authors and is a book reviewer of political books for the New York Journal of Books