Skip to content
Subscriber Only

Bernanke AIG Testimony Ends Week of Bailout Architects

Former Federal Reserve Chairman Ben Bernanke is set to retake the witness stand in a lawsuit accusing the government of imposing illegally harsh terms in the bailout of American International Group Inc., capping a week of testimony from the architects of the insurer’s 2008 rescue.

Maurice “Hank” Greenberg’s Starr International Co., AIG’s biggest shareholder before the rescue, claims in the lawsuit that the government illegally took equity in the company and that a 14 percent interest rate on the rescue loan was extortionate. Starr is seeking at least $25 billion in damages.