Bailed-out AIG sues U.S. for $30.2M

(CBS/AP) NEW YORK — American International Group (AIG), the insurance giant that received a massive federal bailout in 2008, says it wants some tax money back - from 1991.

AIG is suing in Federal Claims Court in Washington for $30.2 million. It says that's how much interest is owed from an overpayment 21 years ago.

AIG said it underpaid taxes for 1997, 1998, and 1999. But it said the government owes it interest for an overpayment in 1991.

The company said the claims work out to $30.2 million in its favor.

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New York-based AIG said it filed the lawsuit on Thursday because the statute of limitations on its claims was about to run out. The statute of limitations runs for six years on the amounts, which AIG said were determined in July and August 2006.

The Internal Revenue Service is run by the Treasury Department, which also owns about 60 percent of AIG common stock, which it has been selling in pieces.

AIG's $182.5 billion bailout was the one of the largest in U.S. history.

Last month, the Federal Reserve Bank of New York said the insurer had completed repaying loans it made as part of the bailout.

AIG did not immediately respond to CBS News' request for comment.

AIG shares fell 40 cents, or 1.3 percent, to close at $31.57. The stock, which dropped to single digits during the financial crisis, has traded between $19.18 and $35.05 in the past 52 weeks.

[skeezix06]

Dropkick AIG to the curb.

[endrepubs]

AIG must think Romney is going to win the election.

[mentalist65]

What a lot of nerve.

[dog10001]

Read, "in your face IRS: zero taxes" ISBN 978-0-9857370-0-9
This is what corporations and rich do, when will common people learn?

[emelder2]

So ... if we own 60% of the common stock, why don't we just fire the CEO and halt the suit. They are suing US !!!

[Rachael_Sparks]

I dont think its that big a deal ..... 30mn is just a fraction of 180bn which they received as bailout .... though i think they should have mentioned it at the time of bailout so 30mn could have been deducted from 182bn ....
do read
http://half-bridge.blogspot.com/2012/07/aig-wants-30-million-in-taxes-back.html

thanks
rachael

[Ulgnud]

The colossal nerve. They got bailed out just to survive and now they sue? They had better hope they never need a bailout again.

[Jhihmoac]

Woww...Talk about biting the hand that freed you...Ingrates!

[KPeters_from_UK]

by KPeters_from_UK July 7, 2012 4:06 AM EDT
by ad_iudicium July 6, 2012 11:07 PM EDT
so how is this Bush's fault... oh yeah, I forgot.. to some people EVERYTHING is BUsh's fault... you're sad....
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Seriously? Where were you in 2008? Ok, I'll remind you. In the later months of 2008 before the 2008 elections W Bush, the GOP President along with his party voted to bail out AIG. Ooooops.


I have pasted part of a great article written in August 2010, for you to help remind you...but you probably won't read it.,,too many big words.

The report concludes that the Federal Reserve Board's intimate relations with the leading powers of Wall Street;the same banks that benefited most from the government's massive bailout;influenced its strategic decisions on AIG. The panel accuses the Fed and the Treasury Department of brushing aside alternative approaches that would have saved tens of billions in public funds by making these same banks "share the pain."

Bailing out AIG effectively meant rescuing Goldman Sachs, Morgan Stanley, Bank of America and Merrill Lynch (as well as a dozens of European banks) from huge losses. Those financial institutions played the derivatives game with AIG, the esoteric practice of placing financial bets on future events. AIG lost its bets, which led to its collapse. But other gamblers;the counterparties in AIG's derivative deals;were made whole on their bets, paid off 100 cents on the dollar. Taxpayers got stuck with the bill.

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Reply to this comment
by jsachse July 7, 2012 1:33 PM EDT
Seriously, where were you in 2008 kpeters??? You do know that Nancy and Harry were running congress in 2008...and senator owebama voted FOR the bailout...


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by KPeters_from_UK July 7, 2012 8:10 PM EDT
WHO WAS THE PRESIDENT?

"U.S. Treasury Secretary Henry Paulson proposed a plan under which the U.S. Treasury would acquire up to $700 billion worth of mortgage-backed securities. The plan was immediately backed by President W BUSH and negotiations began with leaders in the U.S. Congress to draft appropriate legislation."


In regards to Obama...yep he voted for it and SO DID MCCAIN. In the House...Republicans voted 108 to 91 against it.

But again, who was President? Who appointed Paulson?

[KPeters_from_UK]

It is like the tactics used by Cheney and Rumsfeld when they overstated and overestimated the terror in Iraq. They (Bush and Paulson) used hyperbole and shrilled rhetoric in order to freak out Congress. Congress needs to bail the banks or the entire financial world will implode!

[imnho]

AIG is in the mists of a public relations disaster. They would not exsit without the bailout. This is rank ingratiude for them to sue.

If they get into the same situation they were in then its time to deny them rescue.