AmericanTruckersAtWar

Professional, Polite, Prepared to Kill

Fed Bails Out AIG With $85 Billion Loan

The Federal Reserve declined to rescue Lehman Brothers over the weekend, but it decided late Tuesday to loan the world’s largest insurance company, American International Group (AIG), $85 billion to stave off bankruptcy.

Experts and Fed officials apparently concluded that AIG backs so many credit-default swaps and complex securities that its collapse would create a chain reaction so devastating the government had to step in, according to this rundown in the New York Times.

The government will loan AIG $85 billion over two years in return for a warrant guaranteeing the government ownership of nearly 80 percent of AIG’s common stock. Morgan Stanley provided financial advice to the Fed; the Blackstone Group advised AIG.

AIG officials did not immediately answer questions about their legal advisors. The New York Law Journal and other news outlets have reported that AIG approached Weil, Gotshal & Manges about a possible bankruptcy before the bailout unfolded. We’ll follow up with more news on the deal and the legal advisers behind. From The American Lawyer

Another government bail out….

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September 17, 2008 - Posted by | economy | ,

1 Comment »

  1. More tedious BS from the socialists occupying the government. It is getting so bad you cannot distinguish a Repub from a Lib these days. Let these companies fail, they screwed up, now let them know our pain.

    Anyways, just wanted to say hell yeah to rollin the MSR’s in the Suck! I was a 240 Bravo gunner on a Seabee CSE, we called them TMT’s back in 05′. We rolled out of Phantom Fury land with you boys from KBR all the time. Hammer down Goin’ double nickel down MSR Mobile as this one old gent from KBR used to say. He was about 7′ tall and was always strapped with two Kimber .45’s; I wish I could remember his call sign. He was a character.

    Keep up the good work!! We got your back.

    CT

    Comment by CT | September 18, 2008 | Reply


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