Joined: Jan 2006
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   United States
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 Sep 17, 2008, 11:45:42 AM | #1 |
In a bid to save financial markets and economy from further turmoil, the U.S. government agreed Tuesday to provide an $85 billion emergency loan to rescue the huge insurer AIG. The Federal Reserve said in a statement it determined that a disorderly failure of AIG could hurt the already delicate financial markets and the economy.
It also could “lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance,” the Fed said.
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The Fed said in return for the loan, the government will receive a 79.9 percent equity stake in AIG.
US Government to Rescue AIG With Billion Loan at Taxpayers Expense
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