Nearly four years ago, as America was still crawling out of the crater left by the collapse of the economy, a former CEO of AIG — a company whose name had become synonymous with the crash — sued the federal government over the bailout, alleging that the government had violated shareholders’ Fifth Amendment rights. Today, a court sided with wealthy investor Maurice “Hank” Greenberg, but he won’t be getting any damages because the company would have gone bankrupt without the bailout. [More]
In June 2011, Bank of America reached an $8.5 billion settlement deal with 22 groups of investors who had been misled into sinking their money into securities that they didn’t know were backed by worthless home mortgages. Today, more than two-and-a-half years later, it appears that this matter may be nearing an end, but maybe not. [More]
More than five years after AIG received nearly $200 billion from taxpayers to prevent the insurance giant’s inevitable collapse, and a year after the company finished repaying that money, its former CEO is still attempting to sue the U.S. government and Federal Reserve over this very bailout, saying it violated shareholders’ Constitutional rights and that the Fed violated Delaware state law. Today, a federal appeals court dealt a serious blow to his case. [More]
Apparently they don’t cover this in business school. When you’re the CEO of one of the most despised companies in the world, it’s probably best to not repeatedly make a statement that equates public outrage over unmerited executive bonuses with lynch mobs. [More]
If the students graduating from Alfred University on May 18 are expecting a world-is-your-oyster type speech from speaker, AIG CEO and Alfred alumnus Robert Benmosche, then they may want to put on headphones during his portion of the ceremony. Or they may want to listen to the tough love speech he’s got planned. [More]
Once again, the folks at Harris Interactive have released their Reputation Quotient Report, which rates public perception of 60 highly visible companies. Regular readers of Consumerist will not be shocked to see which companies brought up the rear this year. [More]
Today, the Special Inspector General for the Troubled Asset Relief Program released her report on 2012 compensation for executives at institutions that received TARP bail-out money, and well… the title — Treasury Continues Approving Excessive Pay for Top Executives at Bailed-Out Companies — is about as on-the-nose as it gets. [More]
Earlier today, the board of onetime Worst Company in America winner AIG met to discuss whether or not to pile on to a $25 billion lawsuit filed by its former CEO against the same federal government that spent $182 billion to bail the company out in 2008. Under pressure from the public and legislators, the company decided against it.
While we all ponder what to eat for lunch today, the board of bailed-out insurance biggie AIG are meeting today to discuss whether or not to take part in a $25 billion lawsuit filed by its former CEO against the federal government. [More]
At the same time as AIG thanks America, quite literally, in new ads boasting about the company’s repayment of its $182 billion bailout by the taxpayers, its board is reportedly getting ready to decide whether or not to jump on a $25 billion lawsuit filed by AIG’s former CEO against the U.S. government. [More]
Once again, it’s time for the annual Institute for Policy Studies report on which top CEOs are earning more money than the companies they work for are paying out to federal government in taxes.
While a majority of the American corporations that received “exceptional” bailout assistance form the Troubled Asset Relief Program, there are still three businesses — AIG, Ally Financial (you may know it by its pre-bust name of GMAC), and General Motors — remaining. Today, Treasury Dept. announced that the Acting Special Master for TARP Executive Compensation has determined that the top executives at this trio of companies will not get a pay raise in 2012.
When it comes to trusting corporations, it seems we’re a lot more likely to have high opinions of the ones that provide us with shiny toys and zippy technology, rather than big bad banks and other financial institutions. That is, according to an annual public opinion poll on corporate brands.
The one company that will forever be linked to the financial meltdown in the final years of the last decade is AIG (or American International Group, if you’re not into the whole brevity thing), which was bailed out and then effectively taken over by the U.S. government. Now a company led by AIG’s former CEO has filed suit against the feds, alleging that said takeover was unconstitutional.
Someone at AIG must have a sense of humor. The bailed-out insurance behemoth — and, more importantly, one-time Worst Company In America champ — has announced it will now offer insurance policies that help defray the costs for damage control after a company does something that puts in the ranks of widely reviled businesses like AIG.
In a legal battle that could be dubbed an all-star edition of our Worst Company In America tournament, AIG intends to sue Bank of America to get back $10 billion it lost investing in toxic mortgages made by BofA and two of its most infamous acquisitions, Countrywide and Merrill Lynch.
Get ready to slake your thirst for populist rage. Inside Job is a new documentary coming out in October that aims to expose the truth about the true architects of the financial implosion of 2008. You can probably guess from the title whom they’re fingering. Matt Damon is the narrator and it’s released by Sony Pictures Classics. Here’s the trailer:
Because of there being no data on where the money was going and a general attitude of pumping as much money into the banks as quickly as possible, billions of US bailout money wound up in the coffers of foreign financial firms, a watchdog panel chaired by Elizabeth Warren – Warren for CFPA head! – found. 43 of the 87 banks that benefited as a result of the of the AIG bailout were foreign.