|MARCY GORDON, AP Business Writer|
It is rare for a Fed chairman to be deposed in a lawsuit. But Judge
"The court cannot fathom having to decide this multibillion-dollar claim without the testimony of such a key government decision maker," Wheeler said in his ruling.
Greenberg's lawyers want Bernanke deposed on
Wheeler said he will extend "deference and courtesies" to Bernanke in the conduct of the deposition and plans to attend the deposition "to provide appropriate judicial oversight."
The lawsuit was filed in
The government says the allegations are groundless. AIG's only alternative to not receiving federal aid was bankruptcy, which would have left shareholders with worthless stock, the Federal Reserve Bank of
AIG nearly collapsed after making huge bets on mortgage investments that later soured. Federal regulators were concerned that if it were allowed to fail it would hurt the broader financial system, which was already reeling after
AIG became a symbol for excessive risk on
In recent years AIG has undergone a massive restructuring that cut its size in half and turned its focus to its core business of writing insurance.
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