From January 25, 2010 Reuters:
If there is anything that the Bush and Obama Administrations could agree upon it was this: that incompetent Wall Street firms needed government protection. And that alone should have been enough argument for letting them go under. Painful? Yes. But I wonder how much of the continuing crisis more than a year later is because of the unwillingness to allow the market to liquidate and rationalize the bad consequences of the 1999 decision to encourage bad loans.
NEW YORK (Reuters) - U.S. securities regulators originally treated the New York Federal Reserve's bid to keep secret many of the details of the American International Group bailout like a request to protect matters of national security, according to emails obtained by Reuters.
The request to keep the details secret were made by the New York Federal Reserve -- a regulator that helped orchestrate the bailout -- and by the giant insurer itself, according to the emails.
The emails from early last year reveal that officials at the New York Fed were only comfortable with AIG submitting a critical bailout-related document to the U.S. Securities and Exchange Commission after getting assurances from the regulatory agency that "special security procedures" would be used to handle the document.