Judge Adds The Fed To List Of Financial-Crisis Lawbreakers In AIG Ruling
ByIt’s cold consolation for former AIG Chairman Hank Greenberg and his shareholders now, but a federal judge in Washington has ruled that the Federal Reserve broke the law when it seized almost 80% of AIG’s stock and charged it loan-shark rates for an $85 billion bailout in the depths of the financial crisis.
The Fed’s behavior was all the more reprehensible because it gave other financial firms like Citigroup C -0.81%, Bank of America BAC -0.11%, Goldman Sachs andMorgan Stanley MS -0.2% tens of billions of dollars in emergency loans on better terms.
Many of those firms, Judge Thomas C. Wheeler noted in his 75-page decision, “engaged in much riskier and more culpable conduct than AIG, but received much more favorable loan treatment from the Government.”…
Judge Adds The Fed To List Of Financial-Crisis Lawbreakers In AIG Ruling
