Greenberg's Starr Suit Over AIG Bailout Dismissed

Federal judge throws complaint against NY Fed out of court.

Starr International Co.’s lawsuit against the Federal Reserve Bank of New York over the government’s bailout of American International Group Inc. was dismissed by a federal judge in New York.

Starr, an AIG shareholder headed by the insurer’s former chief executive officer, Hank Greenberg, claimed the government used its 2008 bailout of the New York-based company to channel money improperly to its trading partners. U.S. District Judge Paul Engelmayer in Manhattan rejected the claims in a decision that was made public Nov. 16.

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