Calling the accusations “worthy of an Oliver Stone movie,” a federal district court judge in New York today dismissed a lawsuit brought by former American International Group chief executive Maurice “Hank” Greenberg against the Federal Reserve Board.
Greenberg and his company, Starr International, had charged that the Fed acted against the interests of AIG and its shareholders when it bailed AIG out starting in September 2008.
The court said arguments by Greenberg and Starr International are “not plausible,” dismissing, amongst other allegations, that AIG was forced by the N.Y. Fed in Sept. 2008 to pay excessive amounts to its counterparties to satisfy its obligations under credit default swap contracts. Starr claimed in the suit that that transaction served as a “backdoor bailout” by the N.Y. Fed of these counterparties.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
