Greenberg firm sues government

A company run by former American International Group (AIG) chief executive Maurice “Hank” Greenberg is suing the US government for $25bn (£16bn), calling the 2008 federal takeover of the insurer unconstitutional. The lawsuit marks an unusual effort to force the government to pay shareholders, who have seen AIG’s stock price tumble 98 per cent since the middle of 2007, when the insurer’s risky bets on mortgage debt through credit default swaps began to falter.