In the course of the subprime crisis, which turned into a financial crisis, American International Group (AIG), formerly the world’s largest insurance company, came to the brink of bankruptcy. The Federal Reserve Bank of New York – as part of the central bank – rescued AIG in September 2008 with a loan of up to USD 85 billion. In return, the U.S. Treasury took control of the group. – This bail-out, in which the central bank and indirectly the government propped up the company, was seen as a „cardinal sin of a central bank.“ It was also criticized that the central bank also accepted shares in AIG as collateral for a two-year loan it had granted. – See Buybacks, Central Banking, European Monetary Union, Fundamental Error, ECB Sin, Money Lender of Last Resort, Moral Hazard, Sovereign Wealth Funds, Redistribution, Central Bank-Inspired.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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