WSJ - “The actions taken by the Federal Reserve and its New York office to rescue American International Group Inc. were necessary to avoid the “potentially catastrophic consequences” of a failure by the insurer, a top official plans to tell lawmakers on Wednesday.
Thomas Baxter, the general counsel for the Federal Reserve Bank of New York, defended the actions by government officials to stem a major cash bleed at the insurer in November 2008 by reaching agreement with over a dozen banks to tear up $62 billion in insurance contracts.”
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