House Dems to AIG: 'Don't even think about' suing the federal government

Three House Democrats on Tuesday warned insurance giant AIG against suing the federal government over the terms of the federal bailout of the company in 2008.

"Don't do it. Don't even think about it," Reps. Peter Welch (D-Vt.), Michael Capuano (D-Mass.) and Luis Gutierrez (D-Ill.) wrote in their letter to AIG Chairman Robert Miller.

"AIG became the poster company for Wall Street greed, fiscal mismanagement, and executive bonuses — the taxpayer and economy be damned. Now, AIG apparently seeks to become the poster company for corporate ingratitude and chutzpah," they wrote.

"Taxpayers are still furious that they rescued a company whose own conduct brought it down. Don't rub salt in the wounds with yet another reckless decision that is on par with the reckless decisions that led to the bailout in the first place."

AIG got a $182 billion bailout, but former CEO Hank Greenberg has filed a suit against the government for what he says is a deal that forced shareholders to take heavy losses. His suit has already been rejected, but he is appealing it, and AIG itself is considering joining it.

Several other members have already blasted AIG for considering this move — Sen. Elizabeth Warren (D-Mass.) earlier today said the idea of AIG suing the government is "outrageous."

— This story was updated at 3:44 p.m. to note that Rep. Gutierrez is also on the letter.

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