The Federal Reserve and Treasury failed to exhaust all options before undertaking their taxpayer-funded rescue of New York-based American International Group (AIG), a new report finds.

“In previous rescue efforts, the government had placed a high priority on avoiding direct taxpayer liability for the rescue of private businesses,” the report, issued by the Congressional Oversight Panel, states. “With AIG, the Federal Reserve and Treasury broke new ground by putting U.S. taxpayers on the line for the full cost and risk of rescuing a failing company.”

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