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DOJ Seeks to Block Bernanke Testimony

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ben-bernanke2WASHINGTON — The government is trying to block questioning of Federal Reserve Chairman Ben Bernanke in a lawsuit by the former head of American International Group Inc.

The Justice Department told a federal appeals court Friday that high-ranking officials should not have to testify except in extraordinary circumstances.

Former AIG CEO Hank Greenberg sued the government over the $182 billion bailout of the insurance giant that has since been repaid.

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Chinese Investors Take 80% Stake in AIG Aircraft Leasing Unit

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American International Group agreed Monday to sell an 80.1% stake in its giant aircraft leasing business to a group of Chinese investors.

The investor group, which includes New China Trust, China Aviation Industrial Fund and P3 Investments, will pay $4.23 billion to acquire the stake in AIG’s International Lease Finance Corporation. The deal includes an option for the investors to purchase an additional 9.9% stake.

The acquisition is part of AIG’s (AIG, Fortune 500) drive to sell non-core assets, a strategy designed to help the insurance company emerge from the financial crisis, during which it required a government bailout, as a leaner business.

If the option to expand the purchase to 90% of ILFC is exercised, the investor group will grow to include New China Life Insurance and an investment arm of ICBC International.

ICBC International is a Hong Kong-based subsidiary of the Industrial and Commercial Bank of China — a state-owned enterprise and one of the largest banks in the world.

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