Now we see why The Fed didn’t want to tell the truth – it unearthed this (among probably more)
On March 2, 2009, the Federal Reserve and the Treasury announced a restructuring of the government’s assistance to AIG. Specifically, the government’s restructuring was designed to enhance the company’s capital and liquidity in order to facilitate the orderly completion of the company’s global divestiture program. As part of this restructuring, on December 1, 2009, the Federal Reserve completed transactions under which the FRBNY received preferred interests in two special purpose vehicles formed to hold the outstanding common stock of AIG’s largest foreign insurance subsidiaries, American International Assurance Company Ltd. (AIA) and American Life Insurance Company (ALICO). In exchange, the outstanding loan balance held by, and maximum amount available to, AIG under the line of credit were reduced by $25 billion.
That’s a blatant and black-letter violation of Section 14, no part of which allows The Fed to take an equity interest in a company irrespective of the means or terms.
Get me a set of these for BerscrewyouAmerica or I will call this what it was: blatant lawlessness.