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Greenberg’s bailout suits against U.S. government face legal challenges

Experts say the former AIG chief’s lawsuit will fail

Former American International Group Inc. CEO Maurice Greenberg’s $25 billion lawsuit against the U.S. government and the Federal Reserve Bank of New York filed in mid-November has become a significant takings case challenging legal precedents.

Greenberg’s company, Starr International, claimed the 2008 bailout by the U.S. government that took 80 percent of AIG stock was unconstitutional and violated the “takings clause” of the Fifth Amendment.

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