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Jan 25, 2010

Public Disclosure As A Last Resort: How The Federal Reserve Fought To Cover Up The Details Of The AIG Counterparties Bailout From The American People

On September 15, 2008, the three major credit ratings agencies downgraded AIG's credit rating due to rising calls for AIG to post billions of dollars in cash collateral. These collateral calls, combined with the ratings downgrade (which triggered calls for more collateral under the terms of the contracts), put AIG on the verge of a bankruptcy filing. The following day, September 16, 2008, the Federal Reserve Board, with the support of the Treasury Department, authorized the Federal Reserve Bank ...