The first witness called by Boies, Scott Alvarez, the general counsel of the Federal Reserve Board of Governors, testified about the credit terms extended by the government to financial institutions earlier in 2008 and about the terms offered to AIG.Under questioning by Boies, Alvarez insisted that when the bailout began on Sept. 16, 2008, the government had not decided that its equity interest in AIG would take the form of warrants for common stock.Boies argued in his opening that the government imposed a demand for warrants and then changed the deal, insisting on preferred stock to avoid shareholder challenges to its control.He pointed to Sept. 21, 2008, AIG board minutes stating that a bailout involving warrants was “now proposed to be convertible preferred stock.” Alvarez’s hand-written meeting notes from Sept. 18 said “there may be issues with warrants at AIG.”
Blogs I Follow
- Key leader in the Burkina Faso tri-border area interviewed about… how to spend lots of money!
- Who would have thought in other countries there is also demand for protectionism? Ghana’s footwear manufacturing industry
- Recent reading and viewing recommendations
- Great quote from Teju Cole, “Every Day is for the Thief” about markets!
- A most disturbing finding about ethnicity in Kenya
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