Economy

AIG Executive Sues Government for Bailout

No, that's not an Onion headline. Former AIG CEO Hank Greenberg is suing the government for the bailout.

Starr International, the company run by the former head of insurance giant American International Group (AIG), has filed a $25 billion lawsuit against the federal government, arguing that the takeover of the insurance company at the height of the financial crisis was unconstitutional.

When the government took an 80 percent interest in AIG during the financial crisis, it did so without “due process or just compensation,” in violation of the Fifth Amendment of the Constitution, according to the suit filed Monday in the U.S. Court of Federal Claims.

So not only was AIG too big to fail, but it's also too big to be rescued. That's the ultimate absurdity of this lawsuit. It's too big for both failure and rescue. Meanwhile, Greenberg is seeking another $25 billion from the government (the lawsuit claim) on top of the $70 billion bailout.

Evidently, Greenberg is also seeking to be the most hated CEO in America.