By Dow Jones Business News, November 23, 2014, 08:19:00 PM EDT
By Leslie Scism
WASHINGTON-The headlines in the long-running trial over the bailout of American International Group Inc. have been dominated by three heavy hitters who testified-and one who didn’t.
But as testimony likely wraps up Monday after eight weeks, legal observers said two low-profile witnesses from early in the proceedings addressed what may be the key question: whether the government correctly interpreted a 1930s- era section of the Federal Reserve Act to allow it to acquire a sizable equity stake in AIG to help compensate taxpayers.
That issue stands out as one that former longtime AIG Chief Executive Maurice R. “Hank” Greenberg has the best chance of winning, said attorneys and legal scholars.
The lawsuit is at its strongest as “a test of the scope of a government agency’s authority: Did it do things it was authorized to do by law, or did it exceed those boundaries?” said Anthony Sabino, a professor of law at St. John’s University. “The government is vulnerable on that argument.”
The nearly two months of testimony in the U.S. Court of Federal Claims delivered few bombshells.
Read more: http://www.nasdaq.com/article/aig-case-may-turn-on-nonstar-witnesses-20141123-00028#ixzz3JzHjiG8M
Read more: http://www.nasdaq.com/article/aig-case-may-turn-on-nonstar-witnesses-20141123-00028#ixzz3JzHb1LHw