Earlier this year the FED helped arrange the buyout of Bear Stearns.
As the credit crisis persisted throughout the summer the FED left the borrowing window open to depositor banks to borrow money (at very low rates of return to the FED) to the borrowers be repaid later.
Just weeks ago, the FED bailed out Fannie Mae and Freddie Mac which will cost the Federal Reserve (you, the taxpayer) tens of Billions of dollars.
Yesteday, the FED agreed to invest in (bailout) American Insurance Group (AIG) to the tune of a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company, which lost billions in the risky business of insuring against bond defaults.
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