No Need for Bernanke in AIG Bailout Lawsuit
Federal Reserve Chairman, Ben Bernanke, was ruled an unnecessary witness in Maurice Greenberg’s — former chief of American International Group Inc. (NYSE:AIG) — Lawsuit against the U.S. Wednesday.
The lawsuit is regarding the 2008 bailout — at the time, when losses were high, the government took a 79.9 percent stake in AIG. It is based on the premise that the bailout went beyond constitutional authority, according to Reuters. Starr took up the suit in 2011, insistant that sharholders were out billions of dollars, and that the government had violated the 5th Amendment.
The federal appeals court ruling stated that the deposition of Bernanke during his time in office would represent a “significant” disturbance to government activity — and this seems especially pertinent in light of the government shutdown. Once the green light is given by Congress, the FR may need all hands fully on deck.