Robert H. Benmosche
President and CEO
American International Group, Inc.
180 Maiden Lane
New York, NY 10038
Dear Mr. Benmosche:
We write in response to reports that American International Group, Inc. (A.I.G.) is considering joining a lawsuit filed by Maurice Greenberg against the federal government over the terms of the record $182 billion bailout of your company. We urge you not to participate in that suit.
Your company is now running commercials celebrating A.I.G.'s repayment of taxpayer-funded loans that helped the firm avoid bankruptcy. Clearly, you recognize that the $182 billion loan saved your company, and we are pleased that the loan was repaid. However, for our constituents, who continue to suffer the consequences of the subprime mortgage crisis, the impacts of your company's actions are still being felt.
As you are well-aware, A.I.G. played a major role in the collapse of the national mortgage market and the plummeting of home sales from which our country is only beginning to recover. The subprime mortgage market grew to almost $1.5 trillion by the time A.I.G. was bailed out, and over the past four years, nearly four million families lost their homes. A.I.G.'s sale of more than $400 billion in credit default swaps greatly exacerbated the mortgage crisis and facilitated the continued sale of highly-rated, poorly-vetted, and economy-crippling subprime loans and mortgage-backed securities.
The federal government, and more importantly, American taxpayers, are solely responsible for your company's existence today. We believe that the terms of the loan were not onerous and were designed to protect the public interest. We urge you to not to join the suit, and instead to continue to work to earn the trust and confidence of the American people.