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View Diary: Sen. Elizabeth Warren gives thumbs down to AIG's possible suing of taxpayers for bailing it out (125 comments)

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  •  Mr. Greenberg & AIG are lucky... (6+ / 0-)

    ...that they aren't doing jail time.  The gross mismanagement at AIG has been pointed out:

    AIG's senior management and directors failed to implement proper controls and monitor the risk of losses in the subprime market, lawyers for the City of New Orleans Employees' Retirement System said in a complaint filed today in Delaware Chancery Court in Wilmington on AIG's behalf.

    ``In spite of AIG's abysmal corporate governance record and myriad red flags concerning the subprime crisis, the individual defendants knew or recklessly disregarded risks the company faced,'' lawyers for the pension fund said in the complaint...

    ...Directors also allowed the company to misrepresent its business prospects and financial results, exposing AIG to liability for federal law violations, according to the complaint...

    As far as shareholders are concerned?  They gambled their money, and they lost.  Investing in stocks carries risks--the major risk is losing the money invested.  Everybody that invests should know that--except for, apparently Greenberg.

    Let Greenberg sue?  Not only "NO", but "Hell No!!"

    Instead, maybe the SEC should revisit this settlement with AIG and have Greenberg & Co. cough up more money--and maybe even some well-deserved jail time--for AIG's Securities Fraud:

    The Securities and Exchange Commission announced today (2006) the filing and settlement of charges that American International Group, Inc. (AIG) committed securities fraud. The settlement is part of a global resolution of federal and state actions under which AIG will pay in excess of $1.6 billion to resolve claims related to improper accounting, bid rigging and practices involving workers’ compensation funds.
    So the stockholders lost money? Boo Hoo--many people lost money in the market meltdown.  We "pays our money & we takes our chances".  If Greenberg doesn't like losing money, he shouldn't be investing in the market--obviously his judgment isn't all that great.

    Maybe it's time for AIG to actually go out of business, no more bailouts, no more wrist slapping fines for criminal offenses like: "Securities Fraud, improper accounting, bid rigging and practices involving workers' compensation funds."  

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