Feds to take 80 percent stake in AIG

[Lager]

Looks like we are going to bail out AIG.

Link: http://www.iht.com/articles/2008/09/17/business/17insure.php

[mark1]

And the beat goes on.............

:(

In other news, I just heard of TV that Barclays, a British Bank, is taking over Lehman Brothers. Since Lehman Brothers is in bankruptcy, they will only take over the good parts of Lehman, while leaving the rest (subprime loan bonds) in chapter 11.

[OwlMBA]

Yup.

The US govt is about to become the biggest Insurance company in the world. But, then again, after Katrina and Ike we kinda figured out they already are....

So far this year the government has underwritten the biggest banks, investment banks, and now insurance companies.

[Cold Warrior]

Actually, the Feds seem to be doing something right this time. The 80% is collatoral, held by the government as a guarantee for a 24 month loan at LIBOR+8.5%! AIG should have considered looking in Palermo for a better rate. :D

[linda22003]

I couldn't believe they were getting Libor + 81/2 percent when I heard it on the news this morning. My husband said, "They might as well get a payday loan!"