Hank Greenberg.
(Bloomberg) — Maurice “Hank” Greenberg’s Starr International Co. and the U.S. 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 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% and a demand for 80% of the stock. Starr sued the U.S. in 2011 in U.S Court of Federal Claims in Washington.
The government sought to “punish” the insurer through the conditions of the 2008 bailout, Boies wrote.
In the U.S. 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 nonjury trial before Judge Thomas Wheeler are scheduled for April 22.
