News, analysis and personal reflections on the markets & the financial sector

Tuesday, September 16, 2008

Fed takes over AIG, extends $85 billion bridge loan

To avoid collapse, AIG agreed to give the U.S. government a 79.9% stake in exchange for a bridge loan of as much as $85 billion from the Federal Reserve. New executives will replace AIG's management, and the government will have veto power over the company's major decisions. A senior Fed staffer said AIG's most likely move was an orderly liquidation, but the insurer could remain as an ongoing enterprise.

more at http://www.nytimes.com/2008/09/17/business/17insure.html?ref=business

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