The Federal Reserve Board on Wednesday released the minutes of its meetings from July 13 through December 16, 2008, concerning Federal Reserve liquidity facilities and other matters related to the financial turmoil of the period.
Sample on AIG:
Today (September 16, 2008), the Board discussed the funding difficulties (sic) of American International Group, Inc. (AIG), New York, New York. The evidence available to the Board indicated that AIG, a provider of a wide range of products for both institutional investors and consumers to protect against casualty and financial losses, had experienced a rapid and extreme liquidity shortage. Available evidence also indicated that the company faced the imminent prospect of declaring bankruptcy….
….Given the unusual and exigent circumstances, the Board authorized the Federal Reserve Bank of New York under section 13(3) of the Federal Reserve Act to extend credit to AIG or any of its subsidiaries, in an amount up to $85 billion, if the New York Reserve Bank obtains evidence that the borrower is unable to secure adequate credit accommodations from other banking institutions.
Adding related:
Fed ‘08 Minutes Show Extent Of Worry Over AIG, Citi