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The AIG Lawsuit: Biting the Hand that Feeds You?
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The AIG Lawsuit: Biting the Hand that Feeds You?

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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A court case brought by some former AIG shareholders over the government’s 2 billion bailout and takeover of the insurance and financial services firm during the 2008 financial crisis is shining a light on some questionable government judgments, says David Skeel , a University of Pennsylvania Law School corporate law professor. But it will be difficult to prove that AIG would not simply have crashed and burned quickly in the super-heated crisis environment surrounded by quickly escalating events back then. Maurice “Hank” Greenberg, former long-time head of AIG, filed suit in a federal court three years ago, and the case is now being argued. He and his backers from Wall Street seek compensation from the government and claim that the terms of the bailout/takeover agreement were more onerous for AIG than those extended to any of the big banks that also were bailed out.…

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