Instant Alert: Fed approves rule to stop the kind of emergency lending that helped prop up AIG

MANAGE SUBSCRIPTIONS   |   UNSUBSCRIBE   |   VIEW ONLINE   Fed approves rule to stop the kind of emergency lending that helped prop up AIG by Howard Schneider on Nov 30, 2015, 9:35 AM Advertisement WASHINGTON (Reuters) - The Federal Reserve on Monday approved new rules that prevent emergency lending programs from benefiting specific companies, changes ordered by Congress after the central bank helped prop up companies like AIG during the financial crisis of 2008. At an open meeting of the Fed Board, Governor Daniel Tarullo said there was a "longstanding tension of confining moral hazard with wanting to retain flexibility" to act in a crisis. The new rule, he said, which still allows the Fed authority to help stressed parts of the economy, "does a much better job of balancing." (Reporting by Howard Schneider; Editing by Andrea Ricci)   Share the latest business news with your network: Email sent to:   |   Manage your email preferences   |   Unsubscribe Terms of Service   |   Privacy Policy Business Insider. 150 Fifth Avenue, New York, NY 10011