Access denied when invoking Subject.doAsPrivileged()

Note: this is blocking Java DB 10.10 integration into JDK8

I am seeing the following error on Open JDK 8. I will attach a simple test program which pops this behavior. I don't see this exception when I run on Java 7:

FAIL: caught AccessControlException
java.security.AccessControlException: access denied ("AccessDenied$DatabasePermission" "directory:dir" "create")
at java.security.AccessControlContext.checkPermission(AccessControlContext.java:364)
at java.security.AccessController.checkPermission(AccessController.java:560)
at AccessDenied$CreateDatabaseAction.run(AccessDenied.java:122)
at java.security.AccessController.doPrivileged(Native Method)
at javax.security.auth.Subject.doAsPrivileged(Subject.java:474)
at AccessDenied$RunAsPrivilegedUserAction.run(AccessDenied.java:107)
at java.security.AccessController.doPrivileged(Native Method)
at AccessDenied.execute(AccessDenied.java:67)
at AccessDenied.main(AccessDenied.java:50)

The test case is a boiled down version of a problem which we saw while running the Derby regression tests on JDK 8. The repro does not use any Derby code.