Tuesday, January 8, 2013

White House declines comment on possible AIG suit

WASHINGTON (Reuters) - The White House declined to comment on Tuesday on a possible lawsuit by insurer American International Group against the U.S. government that alleges the terms of the firm's 2008 bailout were unfair, but defended the rescue.

"I won't comment on a lawsuit that's pending," White House spokesman Jay Carney told reporters at a briefing.

"The U.S. government acted in a bipartisan fashion to prevent the disorderly failure of AIG after concluding that such a failure would have caused catastrophic damage to the economy and financial system," he added.

The company has repaid the government for its emergency funding and the government reaped a profit from the rescue, Carney noted. The bailout is a reminder of the need to continue putting financial reforms into place, he said.

(Reporting By Mark Felsenthal)

Source: http://news.yahoo.com/white-house-declines-possible-aig-suit-183121452--finance.html

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