Ex-A.I.G. Chief Wins Bailout Suit, but Gets No Damages - The New York Times

Ex-A.I.G. Chief Wins Bailout Suit, but Gets No Damages - The New York Times



In Starr v. United States a United States Court of Federal Claims judge has ruled that the Federal Reserve was without power to do what it did to American International Group in the 2008 financial crisis: take ownership of the company in exchange for a loan of the money that the company needed to avoid liquidation as insolvent,



In a classic statement of the "but for" principle of causation Judge Thomas C. Wheeler held that former AIG CEO Maurice R. Greenberg suffered no loss: without the Federal Bailout the company would have gone into bankruptcy and common stock shareholder equity wiped out. - gwc



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