Congressional Oversight Panel Examines AIG Rescue and Its Impact on Markets
The Congressional Oversight Panel's June oversight report, "The AIG Rescue, Its Impact on Markets, and the Government's Exit Strategy," found that the Federal Reserve and Treasury failed to exhaust all other options before undertaking their unprecedented, taxpayer-backed rescue of American International Group (AIG) and its creditors. This rescue resulted in extraordinary risk to taxpayers and a fundamental redefinition of the relationship between the government and the country's most sophisticated financial institutions.
On September 16, 2008, the Federal Reserve Bank of New York (FRBNY), with the full support of Treasury, rescued AIG with an $85 billion, taxpayer-backed Revolving Credit Facility. These funds would later be supplemented by $49.1 billion from Treasury under the Troubled Asset Relief Program (TARP) as well as additional funds from the Federal Reserve, with $133.3 billion outstanding in total. The total government assistance reached $182 billion.
In researching the government's intervention into AIG, the Panel reviewed original documents from a variety of sources, including: