Monday, March 30, 2015

Slow Saturday Special: AIG $ettles

Related: Aim Was Off On AIG Post 

I remember, I remember.

"AIG investors’ billion-dollar subprime settlement approved" by Patricia Hurtado, Bloomberg News  March 21, 2015

NEW YORK — American International Group Inc. won court approval of a $970.5 million settlement with investors who accused the insurer at the onset of the financial crisis of misleading them about risks tied to subprime mortgages.

The investors, urging a federal judge to approve the accord, called it one of the largest securities class action recoveries stemming from the 2008 financial crisis.

AIG was sued that year by investors who said the New York-based company misstated its exposure to the subprime mortgage market through its securities lending program and its credit- default swap portfolio.

“It’s a great settlement and we are extremely gratified to have been able to achieve this result,” Jeffrey Golan, a lawyer for one of the lead plaintiffs in the case, the State of Michigan Retirement Systems, said Friday in a phone interview.

AIG, bailed out by the US government during the crisis, will pay $960 million while the accounting firm PricewaterhouseCoopers LLP will pay $10.5 million, according to a Manhattan federal court filing.

Lawyers for the lead plaintiffs on Friday also won approval of almost $116.5 million in legal fees, plus other litigation expenses, according to court filings.

US District Judge Laura Taylor Swain set a May 5 deadline for investors to submit claims under the agreement. More than 40,000 already have been filed with the claims administrator in the case. The judge said at least 77 funds have opted out of the accord and may now sue independently, according to the court.

“We are pleased that the settlement has been approved by the court and look forward to putting this litigation behind us,” Jon Diat, an AIG spokesman, wrote.

A separate related suit was filed by former employees who claimed AIG invested their retirement funds too heavily in the company’s own stock. That case is still pending. In 2012, AIG repaid the bailout, which reached $182.3 billion.

Yeah, sure they did. I should believe the bu$ine$$ news of Bloomberg as transmitted through my agenda-pushing propaganda pre$$ and banker's mouthpiece because.... ??



"Robert H. Benmosche, a former MetLife chairman who engineered one of the greatest turnarounds in US corporate history when he took charge in 2009 of the failed insurer American International Group and restored it to health after a $182 billion bailout, died Friday in New York. He was 70. Mr. Benmosche slimmed down AIG’s bloated balance sheet and raised profitability with new technology. By 2012, AIG had once again become the biggest US insurer."

The secrets he knew were just buried with him.