Biz.PeanutButterNews.com

Full Story At money.cnn.com

NEW YORK (Fortune) — Donald Kohn, vice chairman of the Federal Reserve, learned this week about blackmail, Senate style, when he refused to disclose the names of financial institutions benefiting from the bailout of American International Group.

Testifying about AIG (AIG, Fortune 500) before the Senate Banking committee, Kohn respectfully resisted all of its attempts to extract the names. Several committee members grew frustrated and finally got to the point of threatening Kohn with no more dollars for the credit crisis – ever – if he didn’t spill the information.

Full Story At  msnbc.com

CHARLOTTE, N.C. – Struggling insurer American International Group Inc. will receive up to $30 billion in additional federal assistance in the fourth government rescue of the company, a person familiar with the matter told The Associated Press on Sunday.

The new infusion is intended to prop up AIG — once the world’s largest insurer — as it is expected to announce $60 billion in quarterly losses early Monday, the source said on the condition of anonymity because the discussions are still ongoing.

Full Story At  msnbc.com

WASHINGTON – The Federal Reserve is letting banks know they need to be careful when they decide to pay dividends to shareholders.

The central bank, which regulates the nation’s large bank holding companies, said in a guidance letter on Tuesday that banks need to consult with the Fed if they plan to pay any dividends that could raise “safety and soundness concerns.”