Ben S. Bernanke, the Federal Reserve chairman, who was one of the central decision-makers in the 2008 bailout of the American International Group, may have to revisit those tumultuous days in sworn testimony.
A federal judge said on Monday that Mr. Bernanke should have to give a deposition in a lawsuit being brought by the former chief executive of A.I.G., Maurice R. Greenberg, over the rescue of the giant insurer. Testimony from the Fed chairman would “unquestionably†be relevant to the case, Judge Thomas C. Wheeler of the United States Court of Federal Claims said.
“Because of Mr. Bernanke’s personal involvement in the decision-making process to bail out A.I.G., it is improbable that plaintiff would be able to obtain the same testimony or evidence from other persons or sources,†Judge Wheeler said in the order.
“Indeed, the court cannot fathom having to decide this multi-billion dollar claim without the testimony of such a key government decision-maker,†the judge added.
The government has tried to prevent a deposition of Mr. Bernanke, arguing that a high-ranking government official should not have to testify unless the information being sought is “essential†to the case and not “obtainable from another source.â€
But Judge Wheeler said that testimony from senior government officials was “relatively routine†in the Court of Federal Claims when the official “has personal knowledge of relevant information.â€
Mr. Bernanke is a “key witness†whose testimony would be “highly relevant,†the judge continued, deciding that the situation meets the threshold for “extraordinarily circumstances†in which a government senior official would be called to testify.
The deposition would lend a higher profile to Mr. Greenberg’s case, in which he argues that shareholders of A.I.G. lost tens of billions of dollars when the government attached onerous terms to the $182 billion rescue.
Earlier this year, the case set off a storm of controversy when the board of A.I.G. was weighing whether to join with its former chief executive in pursuing the claims. The company decided against doing so, and later sought to bar Mr. Greenberg from suing on its behalf.
Last month, Judge Wheeler narrowed the lawsuit, which Mr. Greenberg is pursuing through his investment vehicle Starr International, but allowed the direct claims against the government to stand.
In ordering the deposition of Mr. Bernanke on Monday, Judge Wheeler said he would be available to rule on any objections. The court set the date of Aug. 16 for the deposition but signaled it would be flexible.
Judge Wheeler plans to attend the deposition personally.
Judge's Order in Starr International v. the United States
