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View Diary: A.I.G. May Sue U.S. Gov’t For $25 Billion As It Airs “Thank You, America!” TV Ad (205 comments)

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  •  If there WERE other alternatives (3+ / 0-)

    besides bankruptcy then the board could have and should have pursued them.  In any case, it just was not the government's responsibility to protect the AIG shareholders' interests.  I know that sounds crass, but you can't use fiduciary duty as a sword and a shield -- here, Greenberg keeps bleating that AIG doesn't owe the US anything, that it only owes a duty to its shareholders -- but the flipside is that NO ONE ELSE owes those shareholders anything AT ALL.  

    I realize that in his little world the deal is usually "heads I win tails you lose," but that just can't be true all the time even for him.

    Although the U.S.  might have been acting in a regulatory capacity at the time, it was not following a prescribed set of rules and it was basically acting as a purchaser of assets and shouldn't be held to any higher standard than any other purchaser/investor at the time would have been.  If it paid MORE than it needed to it would have been selling out the main beneficiaries of its fiduciary duty, that is, American citizens who fund the government.  I am not going to analogize them to shareholders, but Greenberg is nuts if he thinks he was owed more by the U.S. than he was by any other purchaser.  

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