Ex-AIG boss sues US govt for $25bn over forced takeover

The former chief executive of AIG is suing the US government for $25bn for its 'unconstitutional' takeover of the insurer in 2008.

Starr International, the company owned by Maurice Greenberg, which is also a large AIG shareholder, has filed two separate lawsuits against the Treasury the Federal Reserve Bank of New York. The lawsuit against the Treasury claims the takeover of AIG discriminated against the company and its shareholders by charging excessive interest rates on loans from the government - 14.5% initially - and by taking an 80% interest in the company against the wishes of shareholders, the New York Times reports. "The government is not empowered to trample shareholder and property rights even in the mi...