Federal Government Policy and Business

U.S. Appeals Ruling That A.I.G. Bailout Terms Were Too Harsh

The New York Times: In a move that starts a new chapter in the battle over the bailout of the American International Group during the financial crisis, the Justice Department formally appealed a court ruling on Wednesday that said the government’s terms for saving the company had been too harsh.

The ruling in June involved a lawsuit by the former chief executive of A.I.G., Maurice R. Greenberg, who charged that the government overstepped its bounds during the bailout in 2008, imposing unduly harsh terms on the insurance giant compared with lifelines extended to some Wall Street banks during the crisis. The federal lawsuit, brought on behalf of A.I.G. shareholders, sought damages in excess of $40 billion.

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