The linked New York Times article about A.I.G. possibly making a move to sue the US Government due the loss of shareholder profits as a result of the economic bailout, has me baffled.
On one hand we have the notion of honor and respect in that you shouldn't sue someone who has helped you out of a bad situation. (For any childhood fans of 'The Incredibles', it reminds me of when the suicide jumper sues Mr. Incredible for injuring him while saving him)
And on the other we have the very real argument that the Government may have violated Constitutional Law given by the Fifth Amendment.
I have two questions for you; Would A.I.G. suing the US Government be ethical? Feelings aside, is this a case they should win?
I am also baffled by this. I don't claim to be a professional when it comes to ethics but the possibility of A.I.G. attempting to sue the U.S. government for helping them out during a crisis just doesn't seem right to me. I also find it interesting that Maurice Greenburg, the main supporter of A.I.G. suing the government , was also the guy who used to run the company for four decades and then was forced to resign in 2005 due to an accounting scandal. The way I see it, the man who played a key part in putting A.I.G. in the distressed position in the first place is trying to justify his own mistakes by suing the US government. This whole situation just sounds fishy to me. I also don't think A.I.G. can win this case because A.I.G. choose to be bailed out by the U.S. government instead of going bankrupt. A.I.G. was never forced. I think this is a key factor in this case.
ReplyDeleteI think that A.I.G. suing the government is totally wrong. The government bailed the banks out of the financial collapse, much of which was caused by the banks in the first place.
ReplyDeleteit is an unusual case for sure sadly i know so little on the bailout to make any informed comment. I would however want to follow this and see what other people know about the case.
ReplyDeleteThis is outrageous! I can say this much, if A.I.G. ever gets in trouble again, I don't think the government will be there to save them again. But who will? Would the "Too big to fail theory" come into play? This is the world we live in. Trust comes at a premium.
ReplyDeleteThe fact that the government is in this position in the first place blows my mind. When A.I.G failed, the government should have let the company fail or try to reinvent and rebuild itself. This would have alleviated two problems; first it would have prevented the government from being in a position where it could be sued and second it would have given other large companies the incentive not to fail and take government bailouts.
ReplyDeleteI agree with Carter in saying that the government should have let the company fail. If the government bails out a company every time they fail, companies will not learn how to be strong on their own. But when is it okay for government to step in? This is always an argument I can never find an answer to, situation dependent? A.I.G. suing the government seems like a cheap shot to me, like Travis said, government helped them out, they should be thankful. Although there is clearly an argument that Government violated laws, maybe there is another way to go about their actions.
ReplyDeleteI agree with Gift. It is so sad that A.I.G sue the government. During the crisis 2008, the government decided to help A.I.G and let A.I.G borrow millions dollars. A.I.G's action to sue the government- who had helped them is wrong.
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