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Bernanke witnessed in the AIG suit

The former Fed's Governor Ben Bernanke gave a deposition on Thursday in a lawsuit about the 2008 bailout of American International Group Inc. (AIG).

This testimony came after a long legal battle in which the government tried to protect Bernanke from providing a statement. In summer 2013 the US Federal Claims Court Judge ruled that Bernanke’s “personal involvement” in AIG’s $85 billion bailout makes him a key witness. But an appeals court acknowledged that deposing Bernanke while he was in office could cause "significant" disruption.

Bernanke had already testified about the bailout in 2009 before the House Financial Services Committee: "I share your concern. I share your anger. It's a terrible situation. But we're not doing this to bail out AIG or their shareholders, certainly. We're doing this to protect our financial system and to avoid a much more severe crisis in our global economy."

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