The former chairman and CEO of insurer AIG says he nonetheless believes he’s entitled to damages as a result of the government’s 2008 bailout of the organization, and will appeal a court’s ruling against him.
A federal judge gave Maurice Greenberg a partial win Monday when he ruled that the $85 billion government bailout was unfairly punitive and that the government was not entitled to take ownership of AIG in return for its bailout loan. But the judge said the government doesn’t have to spend damages to Greenberg and other AIG shareholders.
Greenberg says he will appeal that portion of the ruling but is pleased with the rest.
Greenberg desires a lot more than $40 billion in damages. He said Tuesday that if the government wasn’t permitted to demand equity in AIG as a situation of the bailout, it’s also not entitled to the revenue it received from selling AIG shares later.
Judge Thomas Wheeler also said the government violated the Fifth Amendment to the Constitution by failing to give fair compensation when it took an 80-percent stake in AIG, and that it was “unduly harsh” in its treatment of AIG compared to other organizations.