AIG v. FRBNY In The Crosshairs: It’s Time To Rethink Fannie And Freddie

The recent decision in the U.S. Federal Court of Claims by Judge Thomas Wheeler is the latest, but by no means last, decision on the highly contentious claims that Starr International has brought against the Federal Reserve Bank of New York (FRBNY), charging the FRBNY with conducting an illegal bailout of AIG in September 2008.  The decision has received extensive coverage and praise for the way in which it has slapped down FRBNY for its illegal actions and abuse of authority.  Indeed, it is highly commendable that Wheeler thought it imperative to examine the merits of this claim noting that unless it heard the case, “the Government could nationalize a private corporation, as it did to AIG, without fear of any claims or reprisals.”