Investors Form Action Group Over AIG Fund, Consider Suing Banks

Stephen Harris

23 October 2008

Hundreds of high net worth clients who have been denied access to their money after AIG Life closed its Enhanced fund to withdrawals last month are considering suing the banks which advised them, according to a report in the UK’s Independent newspaper.

When closing the Enhanced fund, AIG said that investors could get back a minimum of half of their money now, but would have to wait three years if they wanted to reclaim the remainder without loss. Alternatively, they can cash in their entire investment in December, with the possibility of losing as much as 25 per cent, according to the report.

Investors, who have started a website, www.aigvictims.org, claim that banks including UBS, Barclays Wealth, HSBC and Coutts are among those who recommended the bond. WealthBriefing understands that customers of Lloyds TSB were also recommended the investment.

The group, which includes BBC TV presenter Jeremy Clarkson, is also meeting in London to discuss how to proceed.