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Maurice R. Greenberg
Former Fed chief Ben Bernanke defends AIG bailout in court
Former Fed chief Ben Bernanke defends AIG bailout in court

Former Federal Reserve Chairman Ben S. Bernanke testified in federal court Thursday that insurance giant American International Group Inc. had to be rescued by the government in 2008 to avert global catastrophe. Bernanke took the stand at a trial of a lawsuit brought by former AIG Chairman and Chief Executive Maurice Greenberg, who is suing the government over its handling of AIG's bailout loan. Bernanke was one of the key decision makers on the bailout, which began with an $85-billion rescue loan from the New York Federal Reserve in September 2008 and grew to nearly $185 billion in federal aid. In early questioning, Bernanke kept his answers terse when asked about the potential...

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