American International Group Inc., the largest commercial insurer in the U.S. and Canada, said profit rose 1% in the first report under Chief Executive Officer Peter Hancock.
Former Federal Reserve Chairman Ben Bernanke is set to retake the witness stand in a lawsuit accusing the government of imposing illegally harsh terms in the bailout of American International Group Inc., capping a week of testimony from the architects of the insurers 2008 rescue.
The failure in 2008 of AIG would have caused mass panic on a global scale, testified Timothy Geithner, the head of the Federal Reserve Bank of New York at the time.
The Federal Reserve Bank of New York poured billions of dollars into rescuing AIG in Sept. 2008 without drawing up documents that would cement the governments control of the giant insurer, the banks lawyer testified.
The Federal Reserve Board of Governors didnt want to bail out AIG with an $85 billion loan, preferring that the insurer find a savior in the private marketplace, the Feds top lawyer told a judge.
Fannie Mae and Freddie Mac investors lost their legal challenges to a change to the mortgage giants 2008 bailouts that sent their profits to the U.S. Treasury.
In Maurice Hank Greenbergs telling, the $182 billion taxpayer bailout that saved AIG and perhaps all of Wall Street during the 2008 financial collapse was a government rip-off.
A federal judge has cleared for trial a claim by former AIG executive Maurice Hank Greenberg that the U.S. government acted inappropriately when it took control of AIG in September 2008.