(Bloomberg) -- American International Group Inc. could fall asmuch as 3.5% if former Chairman Maurice “Hank” Greenberg wins alawsuit against the U.S. tied to the insurer’s 2008 bailout, CreditSuisse Group AG said.
The estimate is based on Greenberg’s Starr International Co.having a 30% chance of winning a case in which he contends that therescue cheated shareholders out of at least $25 billion.
The risk to AIG is that U.S. Court of Federal Claims JudgeThomas Wheeler rules in Greenberg’s favor, and the government seeksto recover funds from the insurer. The New York-based insurer hassaid it would fight an attempt by the U.S. to collect. CreditSuisse’s Thomas Gallagher assumed a potential cost of $8 billion,based on an estimate that the figure could be as high as $23billion and would more likely be $500 million.
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