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Court faults US govt's AIG bailout but awards no damages

New York

HANK GREENBERG won his fight to hold the US responsible for the bitter pill it forced down the throat of American International Group Inc. But that's about it.

The judge who called illegally onerous the terms of AIG's US$85 billion bailout - hatched during the depths of the financial crisis - also ruled that without it investors would probably have gotten nothing. As a result, he awarded Mr Greenberg's Starr International Co, AIG's biggest investor at the time, no money.

"In the end, the Achilles' heel of Starr's case is that, if not for the government's intervention, AIG would have filed for bankruptcy," US Court of Claims judge Thomas Wheeler said on Monday. "AIG's shareholders would...

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