Court rules 2008 AIG takeover illegal but awards no damages

A US court ruled Monday that the government takeover of insurer AIG at the height of the financial crisis was illegal, but refused to grant billions of dollars in damages to company founder Hank Greenberg. The court said that the Federal Reserve's New York branch had no authority to both lend money to the failing company and seize its equity as it did in a dramatic weekend rescue in September 2008, the same weekend Lehmann Brothers failed. "A Federal Reserve Bank has no right to contro