Fed Adopts Emergency Loan Limits Banning AIG-Style Bailouts

Updated on
  • Rule calls for future rescues to involve at least five firms
  • Dodd-Frank dictated changes amid furor over AIG, Bear Stearns

James Tisch: Fed Should Have Raised Rates Years Ago

The Federal Reserve took the final step to ensure it can’t repeat the extraordinary measures taken to rescue American International Group Inc. and Bear Stearns Cos. in 2008, adopting formal restrictions on its ability to help failing financial firms.

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