2nd Circ. Tosses Suit Challenging Fed's $100B AIG Bailout

Law360, New York (January 29, 2014, 1:32 PM EST) -- The Second Circuit on Wednesday threw out a suit against the Federal Reserve Bank of New York over its handling of American International Group Inc.’s controversial 2008 bailout, ruling the case was improperly filed under state law.

A three-judge panel upheld a lower court ruling dismissing claims by Starr International Co., a company controlled by former AIG CEO Maurice “Hank” Greenberg. Starr, the largest shareholder in AIG before the financial crisis, alleged the New York Fed strong-armed the insurer into performing a “backdoor bailout” of the...
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