Bernanke Testifies At AIG Trial

February 28, 2014 Share Print 0

Former Fed chairman Ben Bernanke was grilled on Thursday about some of his toughest days in the job.
Bernanke gave a deposition in a case brought by Starr International, the firm controlled by former AIG chairman Hank Greenberg that’s now represented by attorney David Boies. Starr and the ex-chairman are challenging the 2008 bailout of AIG by the Federal Reserve, arguing that the terms of the bailout were unfair to existing shareholders

The bailout saved AIG from filing for bankruptcy. The federal government took 92% of AIG’s shares in return for $152 billion that the Fed and Treasury eventually pumped into the insurer. But when the government took that stake, it greatly diminished the AIG (AIG, Fortune 500) stake held by Starr, Greenberg and other shareholders. Starr and Greenberg sued the government in late 2011.
Taxpayers eventually made a profit of $22.7 billion on the AIG bailout.

via CNN

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.