AIG Bailout Lawsuit Shifts to Governments Defense

The transcript discusses a trial involving AIG's bailout, focusing on the legal arguments presented by David Boies, who questions the fairness of the bailout terms and the Federal Reserve's authority. The government defends its actions, arguing the necessity of the bailout during a financial crisis. The trial's outcome remains uncertain, with potential appeals anticipated, possibly reaching the US Supreme Court.

What was one of the main legal questions raised by David Boies in the AIG trial?

• Whether AIG was in financial trouble

• The fairness of the bailout terms to shareholders

• The role of late-night comics in the trial

• The impact of the trial on public opinion

How did the government view the shareholders' presence in court during the AIG trial?

• As a joke due to their dissatisfaction with the bailout

• As a way to gain public sympathy

• As a necessary part of the legal process

• As a sign of the trial's importance

What powers does the Federal Reserve have during times of crisis, according to the government's argument?

• To change interest rates

• To regulate stock markets

• To increase taxes

• To provide financial assistance

What is the likelihood of the AIG trial being appealed, according to the transcript?

• Certain, as the Supreme Court is already involved

• Unlikely, as both sides are satisfied

• Likely, as both sides have protected their right to appeal

• Impossible, due to legal restrictions

Who is a notable figure mentioned as a potential witness in the AIG trial?

• Tim Geithner

• David Boies

• Hank Greenberg

• Ben Bernanke