AIG won’t sue US government over bailout

American International Group had a change of heart today, deciding not to sue the US government over its massive 2008 bailout, The New York Times reported.

AIG received one of the heftiest bailout packages from taxpayers during the financial crisis at $182 billion.

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News that the insurer may join a lawsuit accusing the federal government of taking advantage of the company during the bailout sparked a public uproar.

New York Attorney General Eliot Spitzer called it "insulting to the public," according to Reuters.

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Spitzer headed an investigation into AIG while he was in office. 

Former Obama administration adviser Austan Goolsbee said "GO SCREW YOURSELVES" in a multi-tweet tirade. 

The lawsuit, filed in 2011, is spearheaded by Starr International Co., formerly a major AIG shareholder, the Wall Street Journal reported.

It seeks $25 billion in damages, alleging the bailout was "unfair" to shareholders and that the Federal Reserve Bank of New York charged an excessive interest rate on its initial loan.

AIG said the board carried out its legal and fiduciary duty to consider the possibility of joining the lawsuit before making its decision.