Michigan Suit Challenging AIG Bailout on Religious Grounds Proceeds

A Michigan man who is challenging the government’s bailout of American International Group has won an early legal victory.

U.S. District Judge Lawrence Zatkoff recently refused to dismiss a lawsuit filed in December on behalf of Kevin Murray of Washtenaw County.

Murray claims the AIG bailout is illegal because the insurer has financial products that comply with Sharia principles and promote religion, specifically Islam.

Zatkoff says “unfathomable” pressure faced by the government to handle the national financial crisis doesn’t justify departing from the Constitution. He says the case raises questions about whether the government is promoting religion.

Zatkoff says it’s inappropriate to dismiss the lawsuit while the case still is being developed. The government says the AIG bailout is not an endorsement of religion.

Latest Comments

• June 5, 2009 at 1:19 am

  ralph says:

  Lets say he wins the suit. Does he expect that the government will have to divest itself of AIG or that AIG will have to stop selling takaful products? More likely, the outc... read more
• June 5, 2009 at 9:05 am

  dot_hemath says:

  Agree with you, Ratemaker. This is not an "Interesting Angle", it's a stupid angle. Kevin Murray of Washtenaw County is just some jerk clutching at straws, or more likely, jus... read more
• June 5, 2009 at 7:45 am

  wudchuck says:

  but because we had the government pay farmers to grow corn for the RUSSIA, back in the day, does that mean they promoted communism? um..um.. i think it's another avenue for s... read more