Thomas Baxter, general counsel of the Federal Reserve Bank of New York. (AP Photo/Carolyn Kaster)

(Bloomberg) — The Federal Reserve Bank of New York poured billions of dollars into rescuing American International Group Inc. in September 2008 without drawing up documents that would cement the government’s control of the giant insurer, the bank’s lawyer testified.

AIG’s dire condition required an immediate infusion of cash, and paperwork memorializing the terms of the loan wasn’t complete, Thomas Baxter, the New York Fed’s general counsel, told a judge in Washington today in a trial over a shareholder challenge to the terms of the rescue.

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