|Was China’s sovereign wealth fund poised to save U.S. taxpayers from the risk they took in bailing out American International Group Inc.—but then-Treasury Secretary Henry Paulson rebuffed the Chinese help? That is one of the key assertions in the lawsuit brought by Maurice R. “Hank” Greenberg, the global insurer’s former long-time chief executive. Testimony ended Monday in the 37-day bench trial, and a review of court transcripts helps to shed light on what the Chinese did and didn’t do.
Mr. Greenberg’s suit maintains the government coerced AIG’s board into accepting its harsh terms—including the handover of a 79.9% equity stake to the U.S. —by quashing AIG’s other financing alternatives. The alleged motive: funneling bailout money through AIG to Wall Street firms and overseas banks in “backdoor bailouts.”..........................................Full Article: Source