The Federal Reserve extended the loans to AIG in exchange for an 80% ownership stake, fearing that a collapse of the company could reverberate around the globe. AIG was not banned from lobbying under the terms of its deal with the Fed. Initially, AIG said it would continue to lobby, which it argued was important for protecting the interests of taxpayers and shareholders of the 20% of the company not in government hands.
But it reversed that position after word of its activities got out last week and sparked protests from Congress.
AIG is the same company that used bail out money to fund junkets for its employees. Meanwhile, we're still waiting so see bail out capital coming back to local communities.