Re: OT: A Letter from A.I.G.

All well and good...

... except for the fact that AIG didn't write such a letter, and isn't doing what the letter implies.

One group of AIG *shareholders* has been trying do this, on their own initiative (on the grounds that the bailout terms were excessively punishing to them, and noting that other banks got better terms on their bailouts). This is a private action on their parts... AIG itself was *not* a party to the filing of this suit.

Their suit was dismissed by the judge, who pointed out that AIG really had only three alternatives - accept the bailout and its terms (which they did), find a source of private funds to recover (nobody else was willing to lend them the necessary amount of money), or go bankrupt (which would have left the existing shareholders with even less than they retained).

The shareholders have been trying to appeal the dismissal, and have been trying to persuade AIG itself to take part in the appeal.

The AIG board considered this (they say they were legally obligated to do so, as they have a fiduciary duty to the corporation), and came to the very reasonable decision that AIG should *not* take part in the suit, nor will they allow the suit-filers to pursue these claims in AIG's name.

AIG has (in most peoples' opinions) done some very careless and stupid things in the past few years, but they aren't doing the stupid thing that your "letter" suggests.

If you want to roast anyone, roast Starr International Company, Inc. (the shareholding company which filed the suit).

As I understand it, the rather firm terms of the loan to AIG (i.e. the amount of interest charged) was a big part of why the whole Federal bailout of the banks has actually made money for the taxpayers.

Please cease and desist with the plagiarism. I don't care if you cut-n-paste, but at least make it clear it's someone else's version of events, quotes are handy for that.