Fed Governors Doubted AIG's $30B Payout To Counterparties, Called It 'A Gift'

Doubts at Fed Over A.I.G.'s $30 Billion Payout Two Fed Governors

Weeks after rescuing the American International Group with an $85 billion taxpayer loan in late 2008, Federal Reserve Board officials rejected a proposal that would have forced the insurer's trading partners to return $30 billion in cash that they had received from A.I.G. in the preceding months.

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