For a decade AIG founder and former CEO Maurice “Hank” Greenberg has been pushing to be able to sue the federal government over the $85 billion bailout of the company in 2008. Greenberg — and his firm Starr International — said the government ruined the price of AIG’s stock.
The $85 billion was for 80% of the company’s stock and eventually the government sold it for just $18 billion.
A federal appeals court denied Greenberg and Starr’s bid to sue. That decision was then appealed to the U.S. Supreme Court. In his appeal documents, Greenberg said, “If the decision is allowed to stand, one of the largest government seizures of private property in history will effectively escape judicial review.”
Arguing on behalf of the government was U.S. Solicitor General Noel Francisco. He said, “The court of appeals correctly held that the asserted claims challenging the terms of the government’s rescue of AIG belong to AIG as a whole, not to shareholders individually.”
Without comment, the Supreme Court Justices upheld the appeals court decision. Starr and Greenberg attorney David Boyes expressed disappointment in the ruling.
Another AIG CEO — the current one — Brian Duperreault is doing very well financially at the wheel of what used to be the world’s largest insurer. He picked up $43.1 million in pay last year for running the company. The compensation includes $12 million in cash to make up for money he left on the table at Hamilton Insurance Group. It is part of the deal that let AIG get his services.
He’ll also get $16.1 million in stock options over the next three years.
Source links: Insurance Business America — link 1, link 2, Carrier Management