The original content of Democracy Now! Headlines appears under the Creative
Commons BY-NC-ND 3.0 License (United States). For more, including their other
shows and media, visit www.democracynow.org.
November 17, 2009

Gov’t Audit Criticizes Handing of AIG Bailout
---------------------------------------------



A new government audit has found that the Federal Reserve Bank of New
York mismanaged the $85 billion bailout of AIG by refusing to use its
considerable leverage to wring concessions from AIG’s trading partners.
This resulted in the New York Fed paying full market value for assets
underlying credit default swaps written by AIG to Goldman Sachs and
other banks. This was done even though at least one bank, UBS, offered
to cancel the contracts for less.



.