Bernanke Takes the Stand, Defends Terms of AIG Bailout

The transcript covers Ben Bernanke's testimony regarding the AIG bailout, highlighting his reluctance to testify and the legal challenges posed by Hank Greenberg's team. Bernanke defended the harsher terms for AIG compared to banks, citing moral hazard and unique circumstances. The legal team questioned the legality of the Fed's equity stake in AIG and whether AIG was treated unfairly. The government argued that their intervention prevented worse outcomes for shareholders.

What was the reason given for the harsher terms of assistance provided to AIG?

What was the government's argument regarding the position of AIG shareholders?