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US: Court denies damages for AIG’s ex-CEO

By  |  June 16, 2015

Nearly seven years after the government’s 2008 takeover of American International Group, Maurice “Hank” Greenberg won an unlikely victory in his legal crusade against US authorities. But the former AIG chief and thousands of shareholders who joined his action didn’t win any of the $US 40 billion in damages they had sought.

Judge Thomas Wheeler ruled Monday that the government violated the law when it took a controlling stake in AIG in 2008.

He accepted the government’s arguments that without a Federal Reserve bank’s $US 85 billion loan to AIG, the company would have filed for bankruptcy and shareholders likely would have been left with nothing.

“The government’s unduly harsh treatment of AIG in comparison to other institutions seemingly was misguided and had no legitimate purpose,” Judge Wheeler of the US Court of Federal Claims wrote in his opinion.

Full content: The New York Times

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