(Bloomberg) -- Maurice “Hank” Greenberg’s Starr InternationalCo. and the U.S. filed a second set of post-trial papers in alawsuit over the terms of the government’s bailout of AmericanInternational Group Inc., setting the stage for next month’sclosing arguments.
|Starr’s lawyer, David Boies, in a brief filed Monday, repeatedarguments from last fall’s trial that AIG stockholders were cheatedby onerous terms of a government loan carrying an interest rate of14% and a demand for 80% of the stock. Starr sued the U.S. in 2011in U.S Court of Federal Claims in Washington.
|The government sought to “punish” the insurer through theconditions of the 2008 bailout, Boies wrote.
|In the U.S. filing, Justice Department lawyers wrote that theFederal Reserve acted within its authority when it sought equity inAIG as a condition for an $85 billion rescue loan.
|Closing arguments in the nonjury trial before Judge ThomasWheeler are scheduled for April 22.
|The case is Starr International v. U.S., 11-cv-00779, U.S. Courtof Federal Claims (Washington).
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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