Sunday, March 1, 2009

AIG To Get Additional $30 Billion From US

The financial Black Hole formerly known as AIG is close to a deal with the U.S. government that would ease the terms of its bailout, provide a further equity commitment and help it pay down debt, a person familiar with the matter said on Saturday. The revised agreement is expected to include an additional equity commitment of $30 billion. Additionally, per Reuters:
The London Interbank Offered Rate floor on the interest rate AIG pays on the government's credit line is expected to be removed under the new terms, which would save the insurer about $1 billion a year, the source said. The company currently pays 3 percentage points above Libor.

AIG will also give the U.S. Federal Reserve ownership interests in American Life Insurance (Alico), which generates more than half of its revenue from Japan, and Hong Kong-based life insurance group American International Assurance Co (AIA) in return for reducing its debt, the source said.
And people were complaining about Citi's "no new equity" bail out. It is a nebulla wrapped in a quasar inside a black hole to predict how the market will react to this on Monday. Sphere: Related Content
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maximus said...


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Anonymous said...

straight up theft

Anonymous said...

Would someone mind telling me what the Federal Reserve is doing owning equity in operating companies.

If that doesn't say Bernanke is out of control I don't know what does!

babar ganesh said...

here's an analogy:

9/11 is to guantanamo
the financial crisis is to AIG