Monday, March 2, 2009

AIG Sues the Government

We were amused to learn this morning that American International Group has sued the Federal Government in response to a $306M squabble over the failed Insurer's tax liability. The dispute is evidently related to a certain arbitrage strategy that Washington has (just?) become wise towards. We do not wish today, to debate the merits or legality of AIG's tax maneuvers. Rather, we have chosen to discuss this development for the purposes of commending AIG for apparently having at least some life left in it. We had assumed that AIG, being the first institution to be nationalized during the Crisis, would have succumbed to its fate by this point. Unfortunately, we estimate close to a zero percent chance that AIG is able to emerge from its current state of purgatory and operate as a free corporation. Sphere: Related Content

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