Ex-AIG CEO's company suing government over bailout

November 21, 2011 - 4:40 PM

WASHINGTON (AP) — A company run by the former CEO of American International Group Inc. is suing the government for $25 billion in damages over its taxpayer bailout of the big insurer.

Former AIG CEO Maurice "Hank" Greenberg's current company — Starr International — filed lawsuits Monday in federal courts against the Treasury Department and the Federal Reserve Bank of New York. The suits accuse the government of taking valuable assets from AIG's shareholders without their consent or fair compensation, in exchange for the government's 80 percent stake in the company. The suit says the government's actions violate parts of the Fifth Amendment.

Much of the $182 billion in rescue money went to pay AIG's obligations to big banks.