AIG board weighing joining suit against US

Published on NewsOK Modified: January 8, 2013 at 8:19 pm •  Published: January 8, 2013
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The Court of Federal Claims denied a request by the U.S. to dismiss the lawsuit, which means the case will go forward regardless of AIG's participation.

The government came to the rescue of AIG in September 2008, at the depths of the financial meltdown. The New York company did business with hundreds of firms around the world, and officials feared its collapse would wreck the financial system.

All told, AIG's bailout was the largest of the Wall Street rescue packages.

Since the financial meltdown, AIG has undergone a restructuring that has cut its size nearly in half. Its aim is to focus the company on its core insurance operations.

In November, AIG reported a third-quarter profit of nearly $2 billion thanks to strength in its insurance operations and investment returns. In the same period a year earlier it lost $4 billion.

The Treasury Department announced last month that it sold all of its remaining shares in AIG, ending up with $22.7 billion more than it funneled to the company during the height of the financial crisis.

Shares of AIG closed Tuesday down 28 cents at $35.65. Over the last 12 months, however, the stock is up more than 50 percent.