The US Federal Court Rules that a Government Takeover of AIG’s Equity was Illicit but Caused No Harm

The US government exceeded its authority when it bailed out AIG in 2008 – says the judge. Hank Greenberg, a former CEO of AIG, brought the case on behalf of shareholders seeking USD 40 billion in damages. The court’s decision surprised observers who thought this lawsuit was a long shot. But the judge also reasoned that “if the government had done nothing, the shareholders would have been left with 100 per cent of nothing.” Both parties are going to appeal.