The former CEO of AIG, Hank Greenberg sued
the government, arguing that the takeover in 2008 was unconstitutional. He,
particularly, pointed out that the takeover violated the Fifth Amendment, which
prohibits taking private property for public use, without just compensation.
When I heard of this news, I could not believe what I just heard. This is the most
frivolous lawsuit ever. The government poured 182.3 billion – not million- to
save the company as well as the global financial system because it believed AIG
was too big to collapse. He must express some kind of gratitude to taxpayers instead of suing the government and taking more money from taxpayers. Thanks to the taxpayers’ money, the company
could survive and stockholders, executives, and employees of the company could enjoy hundreds
of millions of bonuses. The government should have let the company fail. The financial aid brought
only moral hazard.
Vocab.
Prop - Verb
If you prop an object on or against something, you support it by putting something underneath it or by resting it somewhere.
uphold, bolster
ex) Bailout does not always prop up the economy.
This is very interesting. It's hard to believe that one company can hold so much responsibility for the country's (and, in part, the world's) current economic turmoil. Let's hope this situation will mend soon!
ReplyDelete-Jamie from the Front Office