Maurice R. “Hank” Greenberg, the former chief executive (and a major shareholder) of insurance giant AIG, who is suing the U.S. government on the grounds that its 2008 bailout of the firm violated his constitutional rights. Mr. Bernanke has said that the rescue of AIG, which ultimately involved $182 billion in government commitments, was a necessary evil that he and the Bush administration undertook only because AIG’s collapse would have imperiled the world economy, in essence, that the government ripped him and other stockholders off by failing to negotiate more generous terms when it took nearly 80 percent equity in the firm, diluting their stakes — in violation, Mr. Greenberg also argues, of the stockholders’ express objections. It was all unnecessary, he claims, because the company was merely illiquid, not insolvent, and could have been saved with a loan.
Posted on: Wed, 15 Oct 2014 16:49:00 +0000
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