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Get to holding Wall Street accountable that's the name of the key project.
Started by our next guest with a one billion nearly one billion dollar settlement reached with AIG just last Friday.
And two billion dollars in the past -- related settlements from other firms.
It's actually been pretty successful and he's apparently just getting started Richard court -- as the attorney general for the state of Ohio.
Joining -- -- in a Fox Business exclusive.
In the wake of Friday's announcements -- of 725.
Million in settlement money.
For your lead -- -- -- three pension funds public employees retirement system teachers and police and fire.
Tell tell you did it because there -- a couple of charges here couple of allegations.
Yet there were actually three different categories of allegations against AIG.
First was that there was accounting fraud and I think that was pretty much acknowledged.
Second was that some of their insurance practices involved bid rigging and contingent commissions that were not disclosed.
And marketing division and third that there was some straight forward stock price manipulation so we have been pursuing this lawsuit for some time.
Hi this year it came to a head over the course of the summer we had a couple of different sessions in which we negotiated what we now.
Have determined it's a fair resolution 725 million dollars to go with about 280 million dollars previously -- over one billion dollar settlement.
How did you approve the engaging in stock price manipulation I was very interested to figure out how you were able to do -- -- traders inflated the stock price house.
We we had records documents emails.
And other depositions and other evidence that indicated that there were.
There were times when traders were sent out to pump the stock.
And it's a fairly classic approach.
But it's illegal under the federal securities laws and so this -- part of our allegations in the case and these.
Allegations were contested if you know there were denials but it's a healthy settlement and and -- -- significant resolution for the pensioners.
That are depending on us to look out for their interest and will that money go in to work back into the -- -- how it works.
It every yet claimant in the country including public pension systems from other states and private pensions labor pension funds and the like.
We'll share in the settlement proceeds here but -- -- plane and certainly our claims will be paid.
I will be a significant boost for teachers public employees policeman fireman in Ohio.
Here is a question and I started to look into this and I want you to explain to our viewers but that a lot of people were saying well wait a minute AIG got -- 182 billion in -- in government help from the -- situation.
This settlement does not if I'm correct come from that they have to actually raise the money right.
That that's correct and an AIG is on -- a program to pay back the TARP funds.
They have significant assets including overseas assets and there's a whole group that's working on.
That entity so that the TARP funds are -- paid.
This is a separate issue here.
They are going to have to -- -- money in the stock offering and there's there's some complexities to that but we feel very confident.
Over the course of our discussions both that this is a significant fair resolution of the case and then it will be paid and that the shareholders will benefit you have.
Pending suits against Fannie Mae and Freddie Mac you've also been supportive of the financial regulatory reform bill yet in that finreg bill sir.
-- man Freddie Mac are not addressed do you wish they were considering you've got a case against them.
Well I I don't know what's the right occasion for that to be addressed legislatively but I think that the financial regulation bill although I think it's a great step forward it's certainly imperfect in certain ways I mean and nobody can deny that it doesn't affect the rating agencies to any great degree.
Who were part of the problem but let's essentially -- and -- putting and I -- -- not.
If I could specifically Fannie Mae and Freddie Mac which are all the taxpayers -- on the hook for billions in that case yes shouldn't that have been part of -- I don't know what was needed to get the bill through congress but certainly Fannie Mae and Freddie Mac have been part of this problem.
It's a significant amount of money at stake in there and it's gonna have to be addressed at some point I think that most legislative leaders and administration would acknowledge.
So I certainly do think it needs to be addressed.
The things that we have alleged in the lawsuit against Fannie Mae and a separate lawsuit against Freddie Mac raise a disturbing concerns about the way those have been managed.
And I think that shareholders were harmed as a result by violates -- federal securities laws that's why we're pursuing those actions yes.
Federal security law violations for Fannie Mae Freddie Mac.
We're watching this case we're watching the state of Ohio and you had a big settlement here against AIG so the success track is there certainly will be watching to please come back sir thank you so much.
Thank you list any time Richard court -- attorney general for the state of Ohio.
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