Greenberg’s Limited Win a Blow to Schwarzman’s Dodd-Frank Fight
Ian Katz, Jesse Hamilton and Sonali Basak

Hank Greenberg’s legal victory could turn out to be a loser for Wall Street in its fight to soften financial rules. By successfully arguing that the Federal Reserve broke the law when it propped up American International Group Inc., Greenberg added another bailout deterrent to a series of provisions implemented since the 2008 crisis that make it harder for the government to rescue financial firms. “The chances of a repeat AIG-style transaction are very low,” said Karen Shaw Petrou, managing partner of Washington-based research firm Federal Financial Analytics Inc. “To the extent there is any thought of constructing one in a crisis, this decision adds a significant speed bump, if not a stop sign.”