Fed to give AIG $85 billion loan and take 80% stake
By Michael J. De La Merced and Eric Dash
Published: September 17, 2008
In an extraordinary turn, the Federal Reserve agreed Tuesday night to take a nearly 80 percent stake in the troubled giant insurance company, the American International Group, in exchange for an $85 billion loan.
The Federal Reserve and Goldman Sachs and JPMorgan Chase had been trying to arrange a $75 billion loan for the company to stave off the financial crisis caused by complex debt securities and credit default swaps. The Federal Reserve stepped in after it became clear Tuesday afternoon that the banking consortium would not be able to complete the deal.
Without the help, AIG was expected to be forced to file for bankruptcy protection.
The need for the loans became necessary after the major credit ratings agencies downgraded AIG late Monday, a move that likely to have forced the company to turn over billions of dollars in collateral to its derivatives trading partners worsening its financial health.
Until this week, it would have been unthinkable for the Federal Reserve to bail out an insurance company, and AIG's request for help from the Fed of just a few days ago was rebuffed.
Rest of article at link above.
Riddle me this, MOA readers..
Why isn't this called WELFARE?
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2 comments:
"Why isn't this called WELFARE?"
@Rikyrah- because I think you're being too polite.
IMO, it's Corporate THEFT by DECEPTION_and I believe the perpetrators of the Crime should be prosecuted to the full extent of “The LAW”_convicted and sentenced to hard time in a state or federal prison!
You cannot make this stuff up!
What we have here is another glaring example of a “capitalistic” LIE biting the dust as the tale of:
“The Great Corruption of Anglophone Governments”, continues to be EXPOSED for all the world to see.
“Free-Markets” AIN’T free...at least NOT for hard-working, poor and middle-class, TAX-paying folk. It NEVER has been!!
When "they" say “the government” will bail out these corrupt-azz corporations they actually mean_You and I will be "footin" the bill, _and as always, they DON'T bother to ask Us how We feel about OUR money being taken!
Frankly, none of this mess surprises me.
It’s the results of decades of absolute Reckless decisions which have been_and continue to be_ directly responsible for fuelling unhealthy debt, particularly in US.
But this is what happens when a nation is governed by a bunch of STUPID, lying-azz, totally incompetent and corrupt POSERS! That’s who’s been in charge of America since Reagan.
I would’ve said since Nixon but that’s not really fair to Nixon. He was by all accounts a very intelligent man_but evil as h*ll and given to bouts of paranoia.
Since Reagan, the numbers of borderline intellectual functioning Losers and Lunatics running this country, posing as “smart” “qualified” “experienced”_and (that all-time favorite) “a good American” has become the "majority" _and the cumulative effect of their decisions have resulted in the Madness is facing today on all fronts.
Decisions aimed at maintaining the ILLUSION of American military “might” and boosting growth at any cost, in order to quickly generate revenue to fund military adventures and political expansion and UNproductive "projects", while keeping up the OTHER illusion of American “prosperity”.
But the people I hold MOST responsible for all for the mess?
Sadly, it's the American people_or rather the majority of Americans who seem to just fine with being led to slaughter by by a bunch of arrogant and ignorant Low-lifes.
it's hard to object to the government's mass bailouts as similar debt-producing methods were put into action to bring the U.S. out of the Depression... our economy has been supported and driven by debt ever since
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