NEW YORK (CNNMoney.com) -- In an unprecedented move, the Federal Reserve Board is lending as much as $85 billion to rescue crumbling insurer American International Group, officials announced Tuesday evening.$85 billion!?! CNN calls that "unprecedented". I call it "#$*(&! unprecedented". To put this in perspective, the federal government felt AIG's position was so weak and the potential repercussions of their bankruptcy so dire that they lent AIG the entire economic output of Hawaii and Alaska for a year.
Tuesday, September 16, 2008
Mega Bailout for AIG
The US government just saved AIG, the nation's largest private insurer, from bankruptcy by providing an emergency loan to give the company some much needed liquidity.