The AIG Action Group, which lobbies for investors with billions trapped in the AIG enhanced money market fund, has warned investors to think twice before taking legal action against the private banks and other advisers who sold it to them.

Doug Brodie, who has just taken control of AIG Action, said his team has taken extensive legal advice: "There is a general consensus among those we have spoken to, that if any case were to start in court, the key strategy of the banks and advisers would be to drag out the case until July 2012, when the protected fund matures. At this stage, the case would dissolve."