Tuesday, September 16, 2008

AIG to be acquired by Fed at a cost of $ 85 billion

The Federal Reserve is reportedly taking a nearly 80 percent stake in the world's largest insurance company, the American International Group, in exchange for an $85 billion loan.   All of AIG’s assets would be pledged to secure the loan and the Fed would receive warrants giving it an ownership stake. Stock of existing shareholders would be diluted, but not wiped out.NY Times link

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