U.S. Federal Reserve Chairman Ben Bernanke should be required to testify in Maurice “Hank” Greenberg’s lawsuit over the bailout of American International Group Inc. (AIG:US), Greenberg’s lawyers said.
Bernanke made key decisions about the government takeover of the insurer during the financial crisis, according to a filing by Greenberg’s Starr International Co. today in the U.S. Court of Federal Claims in Washington.
Starr sued the U.S. for $25 billion in 2011. Greenberg called the assumption of 80 percent of AIG’s stock by the Federal Reserve Bank of New York in September 2008 a taking of property in violation of shareholders’ constitutional rights to due process and equal protection of the law. Starr today urged Judge Thomas Wheeler to deny a government request to quash a deposition subpoena of Bernanke.
“No other witness can serve as a substitute for Mr. Bernanke’s testimony,” according the filing. By Bernanke’s own admission, “the decision to take over AIG was his.”
The case is Starr International Co. v. U.S., 11-cv-00779, U.S. Court of Federal Claims (Washington).
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