Politics & Government

April 6, 2009

Why didn't Fed force big banks to take less of AIG bailout?

The Federal Reserve Bank of New York opted in November not to pursue tough negotiations with large foreign and domestic banks and instead allowed them to receive 100 cents on the dollar in government funds to settle tens of billions of dollars of exotic financial bets guaranteed by AIG because the banks were hostile to taking less. It cost the government billions more.

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