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Hank Greenberg Challenges Legality of Government's Bailout of AIG

Former American International Group chief Hank Greenberg is challenging the legality of the U.S. government's 2008 bailout of the insurer in a trial set to begin on Monday.

Former American International Group chief Hank Greenberg is challenging the legality of the U.S. government's 2008 bailout of the insurer in a trial set to begin on Monday. A lawyer for Greenberg is expected to argue that the government unlawfully imposed excessively harsh terms in the rescue, like high interest rates and obtaining a nearly 80% stake in the company, seeking to punish shareholders. Greenberg was the company's largest shareholder when the government provided AIG an $85 billion loan in an attempt to prevent its collapse during the U.S. financial crisis. He is seeking as much as $50 billion in damages in the lawsuit.