The bailout given in 2008 to AIG (NYSE:AIG) was in an effort to avert a “meltdown of the entire global financial system” according to Assistant Secretary for Financial Stability Tim Massad. A senior Treasury Department official described the takeover as “necessary, legal, and constitutional,” and said the government would heartily defend itself against a lawsuit contesting the 2008 bailout.
Former AIG (NYSE:AIG) CEO Maurice R. “Hank” Greenberg is head of Starr International which earlier filed a lawsuit in the U.S. Court of Federal Claims. “We are reviewing the lawsuit and expect to defend our actions vigorously,” Massad said. Starr International Co. was AIG’s largest shareholder during the 2008 government rescue.
“The suit alleges that by getting a nearly 80% stake in AIG (NYSE: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,’” according to MarketWatch.
Here’s how AIG is trading:
American International Group, Inc. (NYSE:AIG): AIG shares recently traded at $21.03, down $0.85, or 3.88%. They have traded in a 52-week range of $19.18 to $62.87. Volume today was 3,166,264 shares versus a 3-month average volume of 6,915,450 shares. The company’s trailing P/E is 4.77, while trailing earnings are $4.41 per share. Get the most recent company news and stock data here >>