Elizabeth Warren, one of the newest members of the Senate Banking Committee, is sending around a statement about the news that AIG’s board will consider whether or not to sue the U.S. government tomorrow.Warren is known (and maybe feared) for being a major critic of financial institutions during the financial crisis. In 2008, AIG took a bailout from the federal government to save it from bankruptcy as it was on the hook for insuring billions of dollars worth of bad mortgage bonds.
Former AIG CEO Hank Greenberg sued the government in 2011 for alleged violations against shareholders during the bailout process. Now he’s trying to get the AIG’s board of directors to join the suit.
Warren, on the other hand, has been vocal about her opposition to the continued taxpayer bailout of AIG even before winning her Senate seat this fall. You can imagine how she feels about AIG to turning around and suing the government for saving it from bankruptcy.
“Beginning in 2008, the federal government poured billions of dollars into AIG to save it from bankruptcy. AIG’s reckless bets nearly crashed our entire economy. Taxpayers across this country saved AIG from ruin, and it would be outrageous for this company to turn around and sue the federal government because they think the deal wasn’t generous enough. Even today, the government provides an ongoing, stealth bailout, propping up AIG with special tax breaks—tax breaks that Congress should stop. AIG should thank American taxpayers for their help, not bite the hand that fed them for helping them out in a crisis.”
For his own sake, Greenberg may want to stay away from the Senate for a bit.