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AIG's consideration of lawsuit is shameful

During the 2008 financial crisis, insurance giant AIG (AIG) was in trouble. The company needed help to avoid falling into bankruptcy and it turned to the U.S. government for help.

The U.S. government stepped in in a huge wayand bailed out the company, ultimately keeping AIG in business and helpling to stave off bankruptcy. AIG appeared thankful enough, and even recently launched an ad campaign thanking America for the bailout, but now it seems as though sentiment toward the bailout is shifting.

AIG's board of directors is is reportedly meeting this week consider whether or not to join a lawsuit against the government, claiming the terms of the bailout deal were unfair.

The lawsuit, which was originally brought by the company's former chief, Maurice Greenberg claims the bailout robbed shareholders of value and violated the Fifth Amendment. Should Greenberg successfully win a major settlement against the government without AIG joining the suit, other shareholders would likely sue the company claiming it didn't act in their best interest.

This, in my opinion, is the only viable reason that AIG should even consider entering the lawsuit, but I don't believe it's really a good reason for AIG to join the suit.

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.