After Elizabeth Warren Calls Them Out, AIG Drops Its Threat Of Suing The Government

[Report1212]

I think we have a LEADER in the Senate

Earlier this week, it was reported that AIG would reward taxpayers for their $182 billion bailout by suing the government over the terms of the rescue.

Bold progressive Elizabeth Warren immediately called out AIG and condemned its behavior:

Beginning in 2008, the federal government poured billions of dollars into AIG to save it from bankruptcy. AIG’s reckless bets nearly crashed our entire economy. Taxpayers across this country saved AIG from ruin, and it would be outrageous for this company to turn around and sue the federal government because they think the deal wasn’t generous enough,” said Warren in a statement. “Even today, the government provides an ongoing, stealth bailout, propping up AIG with special tax breaks — tax breaks that Congress should stop. AIG should thank American taxpayers for their help, not bite the hand that fed them for helping them out in a crisis.
Politico reports this afternoon that AIG’s board met and decided not to join the lawsuit being considered, representing an early victory for Warren and, by extension, American taxpayers.

Read more: http://boldprogressives.org/after-elizabeth-warren-calls-them-out-aig-drops-its-threat-of-suing-the-government/

[el_bryanto]

1. That is nice - it's hard to believe they even considered this

But still well worth smacking down - go good for Elizabeth Warren.

Bryant

[bullwinkle428]

2. I'd say she's probably already earned her annual salary as a Senator, but we can most

likely look forward to these kinds of ass-kickings throughout the year!

[MrScorpio]

3. She's paying off dividends already

Her election was the best investment that we've made in a very long time.

Senator Warren is great for the bottom line.

[Report1212]

5. Figuratively and literally!

[otherone]

4. Rock on Senator!

[4_TN_TITANS]

6. Lioness of the Senate?

[cali]

7. o frickin' please. like she was the only one. NOT.

Some congressmen are not waiting for AIG to come to a conclusion as it is weighing the possibility of suing the U.S. government.

They want to be on the record now: It’s a bad idea.

Peter Welch, (D., Vt.), and Michael Capuano, (D., Mass.), have sent a short letter to AIG’s Chairman Robert Miller warning him, in stark language, that they don’t think the board should even think of suing the U.S.

UPDATE: Rep. Luis Gutierrez (D. Ill.) has joined his fellow members of the member of the House’s Committee on Financial Services to sign the letter, Welch’s office says.

http://blogs.wsj.com/deals/2013/01/08/congressmen-to-aig-dont-do-it-dont-even-think-about-it/?mod=google_news_blog

sometime du with its hero du jour baby adulation makes me puke.

[Cali_Democrat]

8. You seem angry. n/t

[Indykatie]

10. Here's a Virtual Barf Bag Cali

Warren's comment was bolder than I am used to hearing coming from our Dems so I applaud her.

[cali]

14. read the letter Welch wrote and Capuano

and Grijalva signed. It's even stronger. And it's on record as a letter to AIG.

Dear Mr. Miller:

According to The New York Times, AIG is actively considering suing the U.S. government for monetary damages after American taxpayers rescued your company from its reckless conduct with a $182 billion bailout.

Don’t do it.

Don’t even think about it.

AIG became the poster company for Wall Street greed, fiscal mismanagement, and executive bonuses – the taxpayer and economy be damned.

Now, AIG apparently seeks to become the poster company for corporate ingratitude and chutzpah.

Taxpayers are still furious that they rescued a company whose own conduct brought it down. Don’t rub salt in the wounds with yet another reckless decision that is on par with the reckless decisions that led to the bailout in the first place.

[pacalo]

13. Three congressmen signing a "short letter" of warning to AIG's chairman

isn't quite as impressive as Elizabeth Warren's in-your-face call-out of the outrageous stupidity.

You should be proud of her.

[cali]

15. first of all the letter was written by Welch

the others signed on to it. And it was stronger than her comments and sent directly to the source as a warning. Sure I'm glad she made her comments. I'm no prouder of her than I am of Welch.

[0rganism]

27. can't we be happy about both?

I'm not seeing how appreciation for one action has to diminish regard for the other.

[Tigress DEM]

34. YES!! THAT's a GOOD IDEA.

BACKBONE TO DEMs ----- IIIIIIIIII'me Heeeee-eeeeere!!

[cali]

44. sure but the op here gives credit and sole credit at that

for AIG deciding not to sue, to Warren. Really, what irritates me and always has done is the DU predilection for mindless slavering adulation. Can't stand it. In any case, anyone with two or more functioning brain cells knew that it was exceedingly unlikely that AIG was going to partner with Greenberg in this law suit.

[progressoid]

46. Not to mention nearly every pundit on TV and thousands of Americans as well.

[phleshdef]

48. I agree. Elizabeth Warren is wonderful. But lets not just make shit up.

People are acting like she single handedly stopped AIG from trying to sue the government. It wouldn't surprise me a bit if AIG decided not to for other reasons... like not having an actual case and/or not wanting to deal with the backlash over such a stupid and disgusting move.

[Starry Messenger]

49. We don't need to know all of your bodily functions.

Grow up, crabbypants. Geeze.

[joeunderdog]

9. Damn, I was really starting to love AIG after seeing their commercials.

Warren has just ruined everything.


My favorite Senator.

[pacalo]

11. Elizabeth "Not On My Watch" Warren.

Thank you, Massachusetts voters!

[Terra Alta]

12. Way to go, Elizabeth!

Sounds to me like she is going to be a force to be reckoned with in the Senate.

I think she has a very bright political future ahead of her.

[msanthrope]

16. Liking this Senator more and more. nt

[ananda]

17. I'm glad I signed her petition!

..

[calimary]

28. I'm glad I sent her campaign some money!

It wasn't much, but I sent it. California loves her too! And even though she represents the people of Massachusetts, I feel like she's America's Senator. She represents consumers EVERYWHERE!

[PoliticAverse]

18. That's too bad, I think it would have been great if they had sued the Government.

It might have been in the news for weeks.

[MannyGoldstein]

19. Democrats fight, then Democrats win.

Crazy.

Who knew that fighting works better than capitulation and triangulation?

[Tigress DEM]

35. Shall we send her roses and ping-pong balls like we did Barbara Boxer on her bold moves?

[MannyGoldstein]

39. I'm in, if you organize it...

I suck at organizing stuff like thst.

[sulphurdunn]

20. They live for the money,

regardless of the consequences. They are unconcerned about the morality of their actions. They hire PR flacks to peddle their greed ain't greed it's (fill in the blank) for them.

[sheshe2]

21. Stupid, stupid, stupid GOPers

They are ill informed,nasty leeches on the butt of America!

They will rue the day that they treated Elizabeth Warren this way:

#t=0s

WASHINGTON -- Republicans attempting to grill Elizabeth Warren on the creation of the new Consumer Financial Protection Bureau had to be schooled repeatedly by the former Harvard professor Tuesday for botching basic facts and accusing her of lying.

Warren, appointed by President Barack Obama to implement the consumer watchdog mandated by last year's Dodd-Frank financial reform law, testified at a House Oversight subcommittee hearing dubbed "Who's Watching the Watchmen?"

But those overseers seemed to lack the basic facts about the new agency they were trying to oversee, with the hearing dissolving at the end in a remarkable dispute over how long Warren was supposed to testify.

(SCROLL DOWN FOR VIDEO)

Rep. Ann Marie Buerkle (R-N.Y.) betrayed the first misunderstanding, quizzing Warren on why people getting hired at the CFPB earned better salaries than the average government employee. Warren eventually noted that federal financial regulators are usually paid better (but not very well compared to the people they regulate).

Rep. Frank Guinta (R-N.H.) mistakenly thought the CFPB was unique among financial regulators in having a leader with a five-year term and in not being subject to annual congressional appropriations -- neither of which is true.

A lot more here:
http://www.huffingtonpost.com/2011/05/24/elizabeth-warren-liar-gop-facts-cfpb_n_866505.html

They have no clue what they are in for. Elizabeth Warren will a force to be reckoned with.They are not going to know what hit them Go Senator Warren!

[supercats]

22. Nice Job Senator Warren!!!

Just keep mowing down all the injustices done to our social society, courtesy of "our friends" on the other side of the aisle. They have no shame, and deserve to be taken to the proverbial woodshed repeatedly. Thank god you are a Senator now!!!

[santamargarita]

23. She gets results, fast!

[UnrepentantLiberal]

24. Go Senator Warren.

I hope she's as true as she seems.

[friendly_iconoclast]

25. Well done, Liz! n/t

[smirkymonkey]

26. I am so proud to have voted for her!

She is going to kick ass! Go Elizabeth!

[Claybrains]

29. BAM! nt

[99th_Monkey]

30. Wow!! Our new "freshman" woman US Senator is showing the Democratic Party & POTUS what's what!

See, THIS is what it looks like when our elected representatives REALLY REPRESENT the true
interests of the public. What a great beginning act to her Senate career.

GO ELIZABETH!!

[ReRe]

31. This proves one thing...

... Elizabeth Warren landed on her feet in the Senate. She does not have to go thru some freshman Senator "keep your mouth shut" period. I salute her!

[toby jo]

32. ...goddamn libral democrats using their brains on us....

shit

[ellie]

33. I heart her.

[TwilightGardener]

36. Glad she's on our side--her opinion clearly carries weight, even as

a newbie Senator.

[Jeff In Milwaukee]

37. Don't mess with Sen. Warren. She'll give the "stink eye"

I want to live in Massachusetts.

[BuelahWitch]

38. Can we clone her?

Pretty please?

[BattyDem]

40. She's there less than a week and she's already kickin' ass!

I LOVE this woman!

[SacoMaine61]

41. I think AIG had to bring the option of joining the lawsuit to their Board, but that they never were

serious about joining it...

http://www.npr.org/2013/01/09/168926031/aig-considers-joining-greenbergs-bailout-lawsuit

<snip>

What they've tried to signal is that they want to take this whole idea of fulfilling its duty to shareholders very seriously. But I think reading through the tea leaves, the board would be really hard-pressed to go ahead and join this lawsuit. And as one professor we spoke to basically says, slap taxpayers in the face. AIG, its board and its CEO, Bob Benmosche, have definitely had a keen eye on the politics and the public reaction and that's why they've taken a lot of steps to thank taxpayers, say that we're going to repay taxpayers. And you'd have to assume they are very cognizant of what might happen if they decide to go ahead and join Mr. Greenberg in his lawsuit. But they want to at least show that they are very conscious of their duty to shareholders, even if they may ultimately decide not to join the lawsuit.

[Liberal_in_LA]

42. great. She's going to make an awesome senator.

[Scurrilous]

43. K & R

[srican69]

45. I used to work for Starr Companies. Greenberg is the CEO there and is main plaintiff in this case

He is a total asshole ..

He makes us wear suits even when it 100 degrees outside (the only exception is when he goes vacationning ).... I have seen him a couple times in the lobby at 399 park avenue

Basically he feels that he was robbed by the feds - talk about feeling entitled. This guy is so out of control - his wife once called the company helpdesk to change the batteries in her TV remote ... He made AT&T install a cell phone tower close to where he goes boating and guess what - AT&T complied - PRONTO!!!

[amandabeech]

52. I used to practice corporate law.

My guess is that the officers and maybe a couple of the directors thought that joining the lawsuit would have been really stupid. It would have brought the wrath of the administration and many members of congress down on AIG, and it might have been cited as a reason for not helping AIG in the future should it need another bailout, which I hate to think it might need.

Opposition by management and some directors in this case would not be principled, but would be totally pragmatic.

My guess is that the AIG management and their allied directors knew that public outrage would follow disclosure. Directors sometimes are aligned with shareholders and sometimes more with management. Large shareholder groups often get "their" directors nominated for the board, and nomination usually means election.

Directors aligned with shareholders will push for every 0.001% of profit next quarter no matter what the cost to everything else. Such shareholders will often start lawsuits, usually in Delaware where most large U.S. companies are incorporated. There may have been a threat by large shareholders that if management did not join the existing suit their,the shareholders' directors (who may be a majority), would throw management out for not extracting sufficient "shareholder value".

Under Delaware law, I suspect (I'm a FORMER corporate atty) that management can still point to an interest in longer term results which they believe might be harmed by pissing off the federal government as a reason for not joining in the lawsuit filed by other financial institutions. What better way to prove that than by announcing the possible action and waiting for governmental figures to object?

Warren and Welch, et al., did not hesitate to jump all over the announcement, thus providing evidence of the validity of management's views to the AIG board of directors giving them cover to directors to do what management wants.

The scary thing about my theorizing here, is that management may believe that AIG might need more help from the feds in the future. That might mean that for AIG financial crisis was not resolved by the TARP and other federal reserve bailouts or that AIG has loaded itself up with toxic credit default swaps once again or that AIG is very much exposed in Europe where the most obvious problems are now occurring.

I apologize for not making the most sense here--I joined happy hour a little early.

On edit, the public doesn't often see this level of maneuvering. Something is obviously wrong here. Remember, AIG's board of directors is meeting shortly.

[HoosierRadical]

47. Senator Warren is kicking ass and taking names and

she hasn't been in the Senate a full month!

[Theyletmeeatcake2]

50. Damn this over regulation to Hell.....

Maybe a private equity white knight was in the wings........get the lube ready

[Thinkingabout]

51. Hey, Graham, McCain, McConnell, here is a real Senator, watch and learn.