BUSINESS
03/22/2010 05:12 am ET | Updated May 25, 2011

France Pushed For AIG-Fed Deal To Pay Banks In Full With US Money

The Federal Reserve Bank of New York paid French banks 100 cents on the dollar to settle trades with American International Group Inc. in November 2008, the same month an AIG competitor negotiated payments of less than a third of that to retire similar bets.

The decision to pay in full came after France's bank regulator insisted that Societe Generale SA and Credit Agricole SA's Calyon unit would be violating French law if they accepted less than they were owed...

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