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Ben Bernanke Will Testify In Hank Greenberg's Witch-Hunt

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Snowflake's daddy may not be able to sue the New York Fed, but his lawyers will be allowed a little chat under oath with the Fed's soon-to-be-former chairman.

Filed in Federal Claims Court in Washington, D.C., the lawsuit alleges that the government takeover of AIG had elements that were unconstitutional, including that the government took valuable property from Starr and other AIG shareholders without just compensation. Starr is seeking billions in damages.

Mr. Greenberg's legal team has sought the deposition for months. In October 2013, the U.S. Court of Appeals for the Federal Circuit ruled Mr. Bernanke didn't have to provide testimony in the lawsuit, at least until his term expires on Jan. 31, 2014. The Federal Circuit ruling overturned a decision made by the lower claims court that Mr. Bernanke should be required to give testimony to attorneys representing Starr International….

Late last week, the Federal Reserve told Mr. Greenberg's legal team that it wasn't objecting to the testimony after Mr. Bernanke leaves the post. Mr. Bernanke intends to give the deposition before the end of February, the person involved in the case said.

Gasparino on upcoming Bernanke deposition in Greenberg vs. Government [FBN]
Bernanke to Testify in AIG Bailout Case [WSJ]


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