Fed Limits its Ability to Rescue Financial Firms The Federal Reserve has adopted restrictions on its ability to rescue failing financial companies.  Howard Schneider reports in this article that under the rules, the Fed can provide only broad-based assistance and cannot rescue individual firms. To read the full article in Reuters, click: New Fed Rule Limits its Crisis Bailout Powers. ...

Moral Victory: Plaintiff Wins the Battle (Causation) But Loses the War (Damages) AIG collapsed in the wake of Lehman’s bankruptcy filing and required a government bailout in order to avoid the same fate as Lehman. The plaintiff (AIG’s shareholders) contended that they were harmed by the relatively harsh bailout terms that were imposed on AIG but no other bailout recipients. The defendant (U.S. government) c ...