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AIG: Bailed out again
Fed restructures loan and creates 2 programs to rescue insurance giant from bad bets. Treasury buys $40 billion in shares. AIG quarterly loss: $25 billion.
Troubled insurer American International Group got a new, $150 billion deal from the federal government on Monday, as the Federal Reserve and Treasury Department made significant changes to the terms of the company's original bailout.The Fed announced that it will reduce AIG's original $85 billion bridge loan to $60 billion, and it will reduce the interest rate by 5.5 percentage points.
In addition, the Treasury will use its special authority under last month's $700 billion bailout law - the so-called Troubled Asset Relief Program - to purchase $40 billion in preferred stock.
"This restructuring will improve the ability of the firm to execute its asset disposition plan in an orderly manner," Treasury said in a statement.
Fed restructures loan and creates 2 programs to rescue insurance giant from bad bets. Treasury buys $40 billion in shares. AIG quarterly loss: $25 billion.
Troubled insurer American International Group got a new, $150 billion deal from the federal government on Monday, as the Federal Reserve and Treasury Department made significant changes to the terms of the company's original bailout.The Fed announced that it will reduce AIG's original $85 billion bridge loan to $60 billion, and it will reduce the interest rate by 5.5 percentage points.
In addition, the Treasury will use its special authority under last month's $700 billion bailout law - the so-called Troubled Asset Relief Program - to purchase $40 billion in preferred stock.
"This restructuring will improve the ability of the firm to execute its asset disposition plan in an orderly manner," Treasury said in a statement.
Ridiculous....
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