The former Chief executive of AIG (Maurice “Hank” Greenberg) is seeking to sue the Federal Government for the apparently criminal interest rates placed upon the 2008 bailout loan. Displaying either short term memory loss or a spectacular lack of decorum, the current leaders of the banking giant have made statements of their potential interest in joining in on the lawsuit. Lawmakers (especially on the Senate Banking Commission) are in an uproar about the company’s cheeky legal maneuver.
No doubt this as a blatant case of biting the hand that feeds. Sure 14% is a pretty steep interest rate but, to be frank, this seems like a rude way to respond to a very large rescue. AIG didn’t have to take the Fed’s money, but their refusal would have meant bankruptcy. To get the whole scoop on this unfolding political drama, click the link below for the full Reuters article.