Questions remain after historic Fed loan

The American government's decision to initiate a far-reaching rescue of American International Group (AIG) breaks a number of historic precedents and raises a number of fundamental questions about the role of government in the financial system.

The Federal Reserve will lend up to $85 billion in emergency funding to AIG in return for a government stake of 79.9% and effective control of the global insurance giant.

The Fed and the US Treasury also released the details of how they expect the loan

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