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.
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:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 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.
