“A Congressional watchdog sank its teeth into the Federal Reserve for its 2008 bailout of insurance crook AIG, calling the billion-dollar magic pill “poisonous.”

The panel also criticized the Fed for not acting earlier, or tougher, with AIG for its credit-default swaps, sending a signal to the rest of the Wall Street giants that risky business will be rewarded.

So far, AIG’s rescue has ballooned to $182.3 billion of taxpayer-funded help.” Read more.