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When it began to fail, the Fed correctly judged that the system might not withstand the shock and arranged a rescue.
Deemed too big to fail, the Fed and the Federal Deposit Insurance Corporation stepped in to save the ailing giant.
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If one or both were to fail, the feds could find themselves with up to $1.5 trillion more in liabilities than the current $3.3 trillion in federal debt in the market.
As I think about AIG saying "We're too big to fail" to the Feds, I am reminded of America's long-standing policy not to negotiate with terrorists.
Having failed to strip the feds of the authority to raid medical-marijuana clubs, advocates have instead pleaded with them not to exercise it.
"The statute expressly contemplates that many drugs 'have a useful and legitimate medical purpose and are necessary to maintain the health and general welfare of the American people,' but it includes no exception at all for any medical use of marijuana". Having failed to strip the feds of the authority to raid medical-marijuana clubs, advocates have instead pleaded with them not to exercise it.
Besides, what if the Feds fail to win in court?
And even when the feds fail to act, many states have their own statewide law enforcement investigative agencies, some more reliable than others, that at least offer the prospect of keeping the local police in line.
The story so far: the real shock after the feds failed to bail out Lehman Brothers wasn't the plunge in the Dow, it was the reaction of the credit markets.
It's now clear the feds failed to verify applicants' income before relaying the list, resulting in 5,000 fraudulent Medicaid enrollments.
Officials with the California Department of Forestry and Fire Protection said the feds failed to order the air tankers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com