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AIG Considers Joining Bailout Suit
American International Group (AIG) may join a $25 billion lawsuit against the U.S. government, claiming the insurer’s $182 billion bailout harmed shareholders, the ABA Journal reports. The complaint alleges the government charged “punitive” interest rates on its loans and enabled a “backdoor bailout” of the insurer’s Wall Street clients by using AIG money to pay off credit default swaps. If the company does not join the suit and the action ultimately proves successful, it could face additional shareholder lawsuits.