Fed loses its bid for review of bailout disclosure ruling

An appeals court has refused to reconsider a decision compelling the Federal Reserve Board to release documents identifying banks that might have failed without the government bailout.

The full U.S. Court of Appeals in New York, in a docket entry dated Aug. 20, denied a May 4 Fed request to review a three-judge panel’s unanimous March 19 decision requiring the agency to release records of the unprecedented $2 trillion loan program begun primarily after the 2008 collapse of Bear Stearns Cos.

Unless the court stays its decision, the Fed will have seven days to disclose the documents.

In the event of a stay, the central bank and the Clearing House Association, an organization of 20 commercial banks that joined the Fed in defense of the lawsuit, will have 90 days to petition the Supreme Court to consider their appeal.

 

AIG repaying some $4 billion in federal government loans

In its single biggest repayment of bailout loans so far, American International Group Inc. said Monday it is paying back nearly $4 billion in taxpayer aid with proceeds from a recent debt sale.

The insurer’s aircraft leasing company, International Lease Finance Corp., completed the sale of $4.4 billion in debt. AIG will use more than $3.9 billion of the proceeds to repay the Federal Reserve Bank of New York, trimming the balance on its credit line with the Fed to about $15 billion. Adding interest, the total is about $21 billion.

The emergency credit line was part of a $182 billion federal bailout package that New York-based AIG received during the financial crisis to avoid collapse.

 

– From news service reports