Wednesday, January 9, 2013

AIG - An American Ingrate.

I know I said I would stick to education for all of 2013, but sometimes flexibility is required. And anyway this story is about education---of the public, that is.  

It's crazy but AIG, the firm, which we provided a $182 billion bailout, is considering joining a shareholder suit against the USA. Apparently the shareholders feel that when we bailed out AIG, saved them from abject bankruptcy, we did not bale them out enough. e.g the shareholders were not properly compensated. Whoa!

The logic is convoluted, but so was the bailout in the first place. As I understand it, a shareholder, the former CEO, is suing the USA for $25 billion. AIG is having a board meeting to consider joining the suit. The suit was filed on behalf of the firm and the shareholders. It is enough to make Ayn Rand roll over where ever she is. 

What a relief? AIG has just announced that it will not be joining the suit. Big deal. The suit goes ahead anyway and if they win, AIG wins. When you see the new ads by AIG, the "Thank you America," AIG campaign, have a good cry. 

Or laugh. Take your pick.

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