Challenge to Fed’s AIG Bailout Rejected
A federal judge in Manhattan has dismissed a $25 billion lawsuit filed by Starr International, an insurance company run by former American International Group CEO Maurice "Hank" Greenberg, against the Federal Reserve Bank of New York over its 2008 bailout of AIG. Southern District of New York Judge Paul Engelmayer rejected Starr's arguments that the bailout was an illegal takeover of multinational insurance company AIG and a "backdoor bailout" for other financial firms that did business with it. Boies, Schiller & Flexner partner Robert Dwyer, an attorney for Starr, said in an email that Starr is considering an appeal to the Second Circuit. See more background on the AIG litigation.