The New York Fed is in the hot seat for its decision in November 2008 to buy out, for about $30 billion, insurance contracts AIG sold on toxic debt securities to banks… That decision, critics say, amounted to a back-door bailout for the banks… the New York Fed is a quasi-governmental institution that isn’t subject to citizen intrusions such as freedom of information requests, unlike the Federal Reserve… It’s as though the New York Fed was a black-ops outfit for the nation’s central bank.
— “Secret Banking Cabal Emerges From AIG Shadows” from Bloomberg.
