WASHINGTON – 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)