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Foreign banks benefited from US AIG bailout

13 August 2010

The US government’s failure to gather information about which countries’ institutions would benefit from some of its rescue actions meant the US bore the brunt of the risk and costs associated with the financial crisis bailout, according to a Congressional Oversight Panel report.

Read more: AIG Congressional Oversight Panel

The US government’s failure to gather information about which countries’ institutions would benefit from some of its rescue actions meant the US bore the brunt of the risk and costs associated with the financial crisis bailout, according to a Congressional Oversight Panel report.

When the global financial crisis hit, the US attempted to stabilise the financial system by flooding money into as many banks as possible – including those that had large overseas operations. However, most other nations targeted their efforts more narrowly toward institutions that in many cases had no major US operations and therefore, America’s financial rescue had a much greater impact internationally...


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