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Stage set for AIG bailout case closing arguments

NEW YORK (Bloomberg) — Maurice “Hank” Greenberg's Starr International Co and the US filed a second set of post-trial papers in a lawsuit over the terms of the government's bailout of American International Group Inc, setting the stage for next month's closing arguments.

Starr's lawyer, David Boies, in a brief filed on Monday, repeated arguments from last fall's trial that AIG stockholders were cheated by onerous terms of a government loan carrying an interest rate of 14 per cent and a demand for 80 per cent of the stock. Starr sued the US in 2011 in US Court of Federal Claims in Washington.

The government sought to “punish” the insurer through the conditions of the 2008 bailout, Boies wrote.

In the US filing, Justice Department lawyers wrote that the Federal Reserve acted within its authority when it sought equity in AIG as a condition for an $85 billion rescue loan.

Closing arguments in the non-jury trial before Judge Thomas Wheeler are scheduled for April 22.

Maurice 'Hank' Greenberg: Battling the US in court over AIG bailout

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Published March 25, 2015 at 9:00 am (Updated March 24, 2015 at 9:08 pm)

Stage set for AIG bailout case closing arguments

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