AIG Bailout Architects Leave Questions for Executives The trial over the American International Group Inc. (AIG) bailout shifts this week from the architects of the 2008 rescue, who spent days testifying as to why they imposed the terms they did on the ailing insurer, to the executives who accepted their demands. Maurice “Hank” Greenberg’s Starr International Co., AIG’s biggest shareholder before the bailout, accuses the U.S. of imposing illegally severe conditions in the rescue and is seeking at least $25 billion in damages. Robert Willumstad and Edward Liddy, two of Greenberg’s successors as chief executive officer at the insurance giant, are set to testify this week in the U.S. Court of Federal Claims in Washington, where Judge Thomas Wheeler is hearing the case without a jury. The trial started Sept. 29. Key regulators involved in the rescue, including Federal Reserve Bank of New York executives Sarah Dahlgren and Margaret McConnell, and Eric Dinallo, former superintendent of the State of New York Department of Insurance, also are expected to take the witness stand. Starr alleges in its shareholder suit that the U.S. didn’t have the authority to demand 80 percent of AIG’s equity in consideration for a loan and didn’t pay a fair price for the stock it [...] ilinnews/aig-bailout-architects-leave-questions-for-executives/
Posted on: Tue, 14 Oct 2014 13:15:52 +0000
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