CNBC's Kudlow is reporting that the government might make a huge loan to AIG... Republicans and Wall St hate government until they need it...Maybe Mc
September 15, 2008

CNBC's Kudlow is reporting that the government might make a huge loan to AIG...

Republicans and Wall St hate government until they need it...Maybe McCain call for another commission to explain it to him...Obama calls it a stunt and it is....

The Street:

American International Group (AIG Quote - Cramer on AIG - Stock Picks) shares plunged Tuesday, as the ailing insurer reportedly negotiates a bridge loan from the Federal Reserve that would keep the insurer from filing for bankruptcy.

AIG shares fell to as little as $2.42 in extended trading after reports spread of a possible agreement, which would call for a secured bridge loan of $85 billion to $90 billion and perhaps leave the government in control of the company, according to various media reports.

AIG would commit to sell a basket of assets within a certain timeframe and offer incentives to buyers to complete the sales quickly. In return, the government would get warrants for most of AIG's equity, diluting existing shareholders, The Wall Street Journal said. The New York Times said the loan would give the government an 80% stake in AIG...

For all you economists, please discuss...

Can you help us out?

For 18 years we have been exposing Washington lies and untangling media deceit, but now Facebook is drowning us in an ocean of right wing lies. Please give a one-time or recurring donation, or buy a year's subscription for an ad-free experience. Thank you.

Discussion

We are currently migrating to Disqus

On May 14, 2022, we started migrating our comments from Insticator back to Disqus. During this transition period, some posts will have Insticator and some Disqus. For more information on the transition, as well as information regarding old C&L accounts, please see this post.


We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service for information on our posting policy.