85,000,000,000$ Debt added. Congrats American! AIG bailout.

U.S.

…Global Markets WASHINGTON, Sept 16 (Reuters) - The U.S. Federal Reserve
Board on Tuesday said the Federal Reserve Bank of New York will
lend up to $85 billion to the American International Group
(AIG.N) in a plan aimed at saving the insurer from a
“disorderly failure” that could wreak economic havoc. The Fed said under the two-year facility the U.S.
government will receive a 79.9 percent equity interest in AIG
and has the right to veto payment of dividends to common
preferred shareholders in the deal, which has the full support
of the Treasury Department. “The Board determined that, in current circumstances, a
disorderly failure of AIG could add to already significant
levels of financial market fragility and lead to substantially
higher borrowing costs, reduced household wealth and materially
weaker economic performance,” the Fed said in a statement. The Fed said the loan, secured by all assets of AIG and its
primary non-regulated subsidiaries, was designed to assist the
insurance giant in meeting its…

Read the original here:
85,000,000,000$ Debt added. Congrats American! AIG bailout.

Related posts:

  1. American National Debt In The Last 25 Years [image]
  2. The Great American Debt Roll
  3. The Politics of American Debt
  4. Moody’s Downgrades U.S. Debt Rating; Canada Offers Bailout L
  5. The Growth Of American National Debt Over 70 Years [pics]

Leave a Comment

Previous post: Money As Debt (4 of 5)

Next post: t r u t h o u t | E.J. Dionne Jr. | Good Debt, Bad Debt