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$AIG To Sue Public Tit. Mothers Milk Not Tasty Enough

AIG Building

AIG Building (Photo credit: Wikipedia)

A.I.G.’s (NYSE:AIG) board to meet on Wednesday to weigh joining a $25 billion lawsuit filed by Maurice R. Greenberg, the company’s former chief executive, claiming that the bailout cheated shareholders.

Everyone agrees that AIG was ground zero during the 2008 financial crisis. Black hole has also been used. Now they have paid back every nickel they are considering suing the American Public for not making them profitable enough.

In a move which may create more credibility for the Occupy movement AIG needs to make a lead, follow or get out-of-the-way decision. Here are the reasons why it`s a very bad move despite any capitalist logic from Maurice R Greenberg.

  1. Suing the Federal Government for tens of Billions of dollars as it plummets over the fiscal cliff is not a wise tactical move. Tea party types probably will not welcome the opportunity to enrich a select few.
  2. The lawsuit will take years and then appeals. Obama`s presidency will most likely be over before this is resolved.
  3. The lawsuit will become politicized as greedy capitalism tries to yet again rape the American public. Yes this is the way the spin will work and even Donald Trump who may have an opinion will find it hard to justify. He should know he has been bankrupt at least once.
  4. AIG may find itself trapped politically when it needs something. It would be a suicidal form of cognitive dissonance to sue the American Government (people) and then try to act as if you are above regulatory review.
  5. The role of the bail out was to stabilize the financial system and therefore save America`s proverbial ass. The primary goal was not to maximize wealth for investors. Investors lost control to reckless risk taking. You want to maximize wealth stop sailing your boat onto the rocky shoreline for an extra nickel.

George Gutowski writes from a caveat emptor perspective. Follow him on  twitter@financialskepti or his evil twin brother who is working on a Wall Street murder thriller twitter@georgegutowski

 

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One thought on “$AIG To Sue Public Tit. Mothers Milk Not Tasty Enough

  1. Pingback: Greedy Ungrateful Bastards Who Should Be Hung By Their Thumbs | digger666

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