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Bailout of AIG aftermath. “AIG said to consider suing U.S. for bailout that saved company” A scandal in the making. Or a
Home ownership, car ownership and stock ownership, part of America
A scandal that will not be reported
Just the figures of importance
AIG was $185 billion underwater. In 2008 in a complex package the USA bailed them out with $125 billion. The USA gained a 92% ownership of AIG. Within a few years AIG repaid the money to the USA. In fact the USA made over $22 billion in the deal. 2008 existing shareholders lost $25 billion in investment with AIG.
See the problem. USA made a profit by decreasing shareholders value in the company. The company AIG is now doing well. The USA profited greatly from their investment. Human and corporate shareholders paid the tab.
Is there a silver lining to this cloud?
Who do we bailout when we bailout?
Doesn't it seem as though the USA should be doing bailouts in order to help the citizens. Doesn't it seem as though. USA government expenditures should be for the benefit of the people. Not in this deal. Government got a return on investment of about %20 in a 4 year time period, actually less. AIG directors and Executives made huge salaries. And the shareholders paid for all of it without vote.
Something really stinks here.
So the shareholders are suing.
The lawsuit is basically based on the above and is led by a large corporate shareholder I will call “starr”. Definitely starr has shareholders and eventually it gets down to individual investors. Sure the government took a profit, but they did not take it from AIG they took from people. When government competes with private enterprise it is cheating. Just say you have a taco shop, on the corner of A &B streets. You have worked hard to build your reputation and clientele and efficient process. The government opens a taco shop across the street. You smile because you know you will even do better with the competition. The government frowns. You in fact do better. So the government shuts you down using sophisticated legal machinations that you cannot afford to fight, wrong or right. That is what happens when governments compete with citizens. The notion of prohibiting government from doing this is the 5th amendment which prohibits the taking of property without just compensation.
Laws should triumph not governments
Standing up for what is right.
The bottom line here is not what the corporations are doing. I am confident that if it had been left to boards of directors no lawsuit would have been filed. I am certain that the initial lawyers involved were not looking to recuperate money for individual shareholders. It is my understanding that the lawsuit is brought to bear by individual shareholders who were screwed and are not going to take it lying down. These people are patriots. These people are courageous. These people should be supported. We need more corporate and governmental accountability. Whatever the result of their lawsuit it will create a better economic environment for all of us.
How much can a common man take.
Why is AIG thinking of joining in the lawsuit?
Well corporations have rights just like individuals. They are what we call legal entities. No doubt that AIG lost value in their shares in the deal with the USA. One has to wonder. Was the bailout a bailout? No it was not. It was a shifty, sneaky investment that paid huge dividends. The way it was presented made AIG the bad guy, the government the good guy and just stomped all over the rights of citizens. In fact AIG should sue and should recover. Our government lied to us when it called this a bailout. It was in fact a government taking advantage of a weakened system for the benefit of the government and not the people. It will take a lot of fortitude for AIG to stand up to the USA government. But think of this AIG has been around longer than any person in our government.
I once was in big trouble with a foreign socialist government. They frowned on me leaving the country. I worked for a group that had invested a lot of money. We were in default via "failure to provide economic assurances" I walked into the AIG office there. 12 hours of waiting and explaining and selling, I walked out an assured man. AIG has helped millions of investors worldwide to insure their projects in accordance with local requirements. The company was begun by a man named Starr in 1919.
Post post script.
It is difficult to get details on the ongoing lawsuit. But basically the company of A.I.G. is not pursuing claims against the government. But shareholders who lost billions are still going after the government.
I would seem that government bailouts are not as good as private ones. If this had been anyone but the government AIG would be suing them. I really do not like that result. Especially now that we are seeing first hand that this regime is not being real truthful with us.