Fed Didn't Document Authority For AIG Bailout: GAO

Law360, New York (October 31, 2011, 7:56 PM EDT) -- The Federal Reserve Board failed to fully document how it was authorized to rescue American International Group Inc. in 2008, nor did it instruct AIG on related securities disclosures, the U.S. Government Accountability Office revealed in a report Monday.

While the GAO did not make any new recommendations in its 152-page report, Congress' investigative arm did restate earlier recommendations for the Fed to improve both its documentation standards and conflict-of-interest policies.

The Federal Reserve Board authorized emergency lending for AIG in September 2008, in a bid...
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