AIG Sues United States

By Big Tent Democrat, Section Economy
Posted on Fri Mar 20, 2009 at 10:54:13 AM EST
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But not over the bonuses. NYTimes:

While the American International Group comes under fire from Congress over executive bonuses, it is quietly fighting the federal government for the return of $306 million in tax payments, some related to deals that were conducted through offshore tax havens. A.I.G. sued the government last month in a bid to force it to return the payments, which stemmed in large part from its use of aggressive tax deals, some involving entities controlled by the company’s financial products unit in the Cayman Islands, Ireland, the Dutch Antilles and other offshore havens.

[AIG is suing, in part, over] deals involv[ing] A.I.G. offshore entities whose function centers on executive compensation and include C. V. Starr & Company, a closely held concern controlled by Maurice R. Greenberg, A.I.G.’s former chairman, and the Starr International Company, a privately held enterprise incorporated in Panama, and commonly known as SICO.

What a world.

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AIG Sues United States | 33 comments (33 topical)

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How much of AIG (5.00 / 1) (#1)
by jeffinalabama on Fri Mar 20, 2009 at 10:57:59 AM EST

does the government own?

80% (5.00 / 1) (#3)
by Big Tent Democrat on Fri Mar 20, 2009 at 10:59:18 AM EST

It's time to fire (5.00 / 1) (#5)
by jeffinalabama on Fri Mar 20, 2009 at 11:00:30 AM EST

some folks, then.


: Or someone can grow a pair of somethings (5.00 / 3) (#6)
by Militarytracy on Fri Mar 20, 2009 at 11:03:50 AM EST

that are used to promote the survival of the species and tell these yahoos exactly how this will be done or you can all just eff off and fail!

Ha ha ha ha (5.00 / 1) (#4)
by Militarytracy on Fri Mar 20, 2009 at 11:00:25 AM EST

the government is suing itself? I refuse to go read whatever Kandy Britches Klein is going to write about this.


I once litigated a dispute (5.00 / 1) (#8)
by Steve M on Fri Mar 20, 2009 at 11:14:08 AM EST

between MADD and the Michigan chapter of MADD, over what I cannot recall.

But the Michigan chapter of MADD isn't a legal entity, we told the judge. They're not a separate corporation, they're not anything at all. This case is like the automotive department at Sears suing Sears.

We lost that argument, too. Apparently the court saw nothing wrong with an organization suing itself.


well, okay then. (5.00 / 1) (#10)
by jeffinalabama on Fri Mar 20, 2009 at 11:20:03 AM EST

(scratching my head while trying to figure this one out) I guess I can sue myself, then?


I wouldn't advise doing that unless (none / 0) (#13)
by inclusiveheart on Fri Mar 20, 2009 at 11:27:41 AM EST

you have something of value to gain from yourself.


And either way (none / 0) (#15)
by Cream City on Fri Mar 20, 2009 at 11:44:23 AM EST

you'll be stuck with the legal fees -- as the first rule so often restated here is that, even if you're a lawyer, or especially if you're one, you wouldn't represent yourself on either side, now, would you? :-)


: IANAL (none / 0) (#17)
by jeffinalabama on Fri Mar 20, 2009 at 11:46:06 AM EST

I'd have to hire BTD and Jeralyn, but I couldn't afford it!

I can't believe the (5.00 / 3) (#2)
by Militarytracy on Fri Mar 20, 2009 at 10:58:54 AM EST

arrogance and audacity. I just can't but it won't go away.

Stories like this will ... (5.00 / 6) (#7)
by Robot Porter on Fri Mar 20, 2009 at 11:04:13 AM EST

put The Onion out of business.

LOL... (5.00 / 1) (#9)
by kdog on Fri Mar 20, 2009 at 11:14:33 AM EST

it does read like The Onion...good call.

This just says it all doesn't it...I can't describe it any better than "playing games". Govt. gives AIG a hundred billion or whatever the total is, then taxes to get 165 million back, while AIG sues for 306 million...next they will argue over who has the rights to the redeemable soda cans in the cafeteria.

For the life of me I don't know which corrupt, bloated, useless, "too big to fail" bueracracy is worse.


: and dont forget (5.00 / 4) (#16)
by Amiss on Fri Mar 20, 2009 at 11:45:51 AM EST

they are using the bailout money to sue us!

Predictable (5.00 / 2) (#11)
by TeresaInSnow2 on Fri Mar 20, 2009 at 11:24:24 AM EST

Just one of the many joys when you give these folks huge sums of money with no strings attached.

New definition of "Chutzpah" (5.00 / 1) (#14)
by bocajeff on Fri Mar 20, 2009 at 11:36:22 AM EST

Puke (5.00 / 1) (#18)
by eric on Fri Mar 20, 2009 at 11:46:10 AM EST

I am getting really, really sick of this.

Pitchforks on sale... (5.00 / 1) (#19)
by kdog on Fri Mar 20, 2009 at 12:00:19 PM EST

at Home Depot eric...but I think I'll get one from one of the few local hardware stores still running...I swore off Home Depot when they laid off all the cashiers and replaced them with those stupid self-checkout machines.


Reality started outpacing satire (none / 0) (#20)
by jondee on Fri Mar 20, 2009 at 12:27:29 PM EST

quite a while ago and started moving into Fellini's territory; and it's starting to look more and more like the real prophets, futurists and forecasters were the surrealists.

Just dont forget to laugh.


: How could I forget to laugh? (none / 0) (#22)
by kdog on Fri Mar 20, 2009 at 12:30:10 PM EST

It's all we can do brother...that or get locked up.

I won't touch (none / 0) (#21)
by eric on Fri Mar 20, 2009 at 12:30:07 PM EST

Home Depot. The CEO's comments about the fall of civilization because of unions and all.

This truly is pitchfork time, I agree. BAAH.


: Stuck between a pitchfork and a hard place... (none / 0) (#23)
by kdog on Fri Mar 20, 2009 at 12:38:11 PM EST

no doubt man....I'm just waiting for the proper numbers.
Does the CEO of Home Depot realize he is a member of the most harmful protectionist trade union known to man that may in fact lead to the downfall of civilazation? CEO Local 666.
The irony is rich these days...

: In lieu of "The Merry Widow" (none / 0) (#24)
by jondee on Fri Mar 20, 2009 at 12:41:36 PM EST

as the French called her, a little public tar and feathering might offer some catharsis for the public.

Did they think it wouldn't ne noticed? (5.00 / 2) (#25)
by DFLer on Fri Mar 20, 2009 at 12:51:21 PM EST

...it is quietly fighting the federal government for the return of $306 million in tax payments, some related to deals that were conducted through offshore tax havens. A.I.G. sued the government last month in a bid to force it to return the payments...

They should get that money (5.00 / 1) (#28)
by Jen M on Fri Mar 20, 2009 at 04:37:03 PM EST

As soon as they return all the stimulus money they received.

AIG (none / 0) (#31)
by MrConservative on Fri Mar 20, 2009 at 09:13:31 PM EST

They received bailout money, not stimulus money.


: oops (none / 0) (#32)
by Jen M on Fri Mar 20, 2009 at 09:16:00 PM EST

ok, when they give back all the bailout money (my bad)

Through the looking glass (5.00 / 1) (#29)
by DFLer on Fri Mar 20, 2009 at 05:09:43 PM EST

The reported income for which the taxes were paid is now being reported as losses. Give hte taxes back.

The bonuses etc were paid on the basis of the previously reported gains(now losses.) Can't give those back.

That office is in the Caribbean. Can't even tax those.

The Jungle (none / 0) (#12)
by SOS on Fri Mar 20, 2009 at 11:26:58 AM EST

And what are professional Wall Street traders thinking behind the scenes about all this?

Example 1

"It is also probably time to start overweighting energy significantly, as it may be used as a real asset or money. The key will be to use companies that are not spending heavily to find it. I think that now eliminates project intensive companies like Petrobras, and deep water drillers. I lean toward using unleveraged real estate like PCG (timber) and JOE (large regionally land holdings). I will keep my Brazil exposure and even look to increase it. I am looking at a view apartment (for sale by an American) in Salvador today."

Retro-active (none / 0) (#26)
by DFLer on Fri Mar 20, 2009 at 01:31:40 PM EST

The first part of the tax money AIG wants is re the offshore, as cited above.

The second chunk is:

The remainder of A.I.G.'s claim, for $244 million, concerns net operating loss carry-backs, capital loss carry-backs, a general refund claim and claims for refunds of other tax-related payments that A.I.G. says it made to the I.R.S. but are now owed back. The claim also covers $119 million in penalties and interest that A.I.G. says it is due back from the government.

Interesting how losses can be retro, but income taxes on bonuses cannot be.

(part of this chunk is: In part, A.I.G. says it overpaid its federal income taxes after a 2004 accounting scandal that caused it to restate its financial records. A.I.G. says in part that it is entitled to a refund of $33 million that SICO paid in 1997 as compensation to employees, which it now says should be characterized as a deductible expense.

Cayman Invasion? (none / 0) (#27)
by ricosuave on Fri Mar 20, 2009 at 03:44:47 PM EST

Perhaps we should just invade the Caymans and appropriate/nationalize the banks. It seems like it would solve most of these problems. It worked to get Noriega out of Panama.

Of course, if the US Government owns AIG and its Cayman funds while taxing the bonuses given to employees, collecting back taxes from the company, and shoveling cash into the front door, then we would probably still find a way to file some lawsuits to add more complexity.

We should give them the money back (none / 0) (#30)
by MrConservative on Fri Mar 20, 2009 at 09:13:12 PM EST

And then deduct an equivalent amount from the bailout money.

Look at Obama's Donors, (none / 0) (#33)
by BrassTacks on Sat Mar 21, 2009 at 01:19:42 AM EST

Before we throw Dodd under the bus, look at how many of Obama's top donors are now on the bailout band wagon.