Thank you for sharing!

Your article was successfully shared with the contacts you provided.
(Bloomberg) — 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 insurer’s 2008 rescue.

Maurice “Hank” Greenberg’s Starr International Co., AIG’s biggest shareholder before the rescue, claims in the lawsuit that the government illegally took equity in the company and that a 14 percent interest rate on the rescue loan was extortionate. Starr is seeking at least $25 billion in damages.

Bernanke, set for his second day of testimony today in the U.S. Court of Federal Claims in Washington, yesterday defended the higher rate, saying the $85 billion loan “was intended to prevent the collapse of a systemic firm” while the interest kept its shareholders from reaping a windfall.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • 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?



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.