Hank Greenberg, the former head of AIG, is suing the government over its takeover of the insurance and financial services company during the 2008 crisis.
Greenberg, who headed AIG from 1962 to 2005, is seeking $25 billion in damages, CNBC is reporting. Greenberg has been a verbal critic of the government takeover of AIG.
The suit alleges that by getting a nearly 80% stake in AIG in exchange for providing tens of billions of dollars in aid, the government took valuable property from Starr and other AIG shareholders in violation of the Fifth Amendment, which says that private property can’t be taken for “public use, without just compensation.”
The suit acknowledged that the steps were taken for the greater well being of the U.S. economy, but that the end does not justify the means.
Greenberg is currently the head of Starr International, a holding company for several financial services firms. Starr International is the company listed on the suit.
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