A federal appellate court has rejected a claim by former American International Group chief executive Maurice “Hank” Greenberg’s Starr International that the Federal Reserve Bank of New York breached its fiduciary duty by bailing out AIG during the height of the financial crisis in 2008.
The U.S. Court of Appeals for the Second Circuit Wednesday affirmed the 2012 decision of Southern District Judge Paul Engelmayer (See Profile) dismissing claims against the reserve bank (NYLJ, Nov. 2, 2012). Starr was AIG’s principal shareholder when the bank offered an $85 billion credit facility to AIG.
