JUST IN! Fed Bails Out AIG - $85B takeover

Fed in AIG rescue - $85B loan - Sep. 16, 2008

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.

The Fed authorized the Federal Reserve Bank of New York to lend AIG (AIG, Fortune 500) the funds. In return, the federal government will receive a 79.9% stake in the company.

Officials decided they had to act lest the nation's largest insurer file bankruptcy. Such a move would roil world markets since AIG (AIG, Fortune 500) has $1.1 trillion in assets and 74 million clients in 130 countries.

An eventual liquidation of the company is most likely, senior Fed officials said. But with the government loan, the company won't have to go through a tumultuous fire sale.

"[A] disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance," the Fed said in a statement.

The bailout marks the most dramatic turn yet in an expanding crisis that started more than a year ago with the mortgage meltdown. The resulting credit crunch is now toppling not only mainstay Wall Street players, but others in the wider financial industry.

The line of credit to AIG, which is available for two years, is designed to help the company meet its obligations, the Fed said. Interest will accrue at a steep rate of 3-month Libor plus 8.5%, which totals 11.31% at today's rates.

AIG will sell certain of its businesses with "the least possible disruption to the overall economy." The government will have veto power over the asset sales and the payment of dividends to shareholders.

The company's management will be replaced, though Fed staffers did not name the new executives. The board will remain. For customers, it will be business as usual, officials said.

so basically, since the governments saved AIG's ass, the government owns most of AIG now??

the government gave AIG 85B dollars in exchange for 80% of the company...we need to stop funding a USELESS war!!

It's a ticking timebomb, this will not help that much. they've already spend like 766 billion just to save major banks and stuff. I'm following this all because studying for banking & insurance ( don't know if it's correct).
But in we class we have been following this whole thing closely. We even said that most americans don't own any money, they just live on credit. Cause they keep borrowing and borrowing but can't pay back and it's not only their fault but also of the company's who lend them money. They see that the person already has debts, but still they give them money...

This makes no sense at all, the company is gonna crumble again in no time.

You're right, this time they saved one, but what if another bank goes broke, and then another and another.

The american government can finance this shit, cause they keep makin dollars, sounds nice don't you think?
Wrong, inflation is gonna rise and rise, and then America is gonna end up like Zimbabwe... Payin like $300.000 for a loaf of bread? Shit isn't looking that great...

ya my science teacher was tole us bout dis
she said it was because alot of ppl depend on aig nd shit

"Alot" doesn't even begin to describe it....

AIG operates in 130 countries. They are tied up in over a trillion dollars at any given time. Everybody and their momma has an AIG policy.

I really feel differently about this than Bear Sterns. Fuck Bear Sterns. They could have failed.
AIG *COULD NOT* fail without affecting ALL major world markets.

Our economy is terrible. These CEO's that don't know how to run companies and let them go bankrupt aren't really helping the matter at all. The government keeps trynna save these companies, very soon our economy is going to completely crash. It needs to unfortunately so that we can build a better one. Also no thanks to Bush, our country has turned to complete shits financially. 8 years of disgusting presidency.

HERE is the REAL news to this-

THE reason that the US government is trying very hard to give over 700 billion dollars to these corporate entities is because these corporate entities own and control most of the politicians.

Can you even comprehend that amount of money?

Thats A Seven with with nine zeros after it:

7,000,000,000

And where is this money coming from? The taxpayers back, the pension funds, etc. etc.
The US economy CANNOT afford this-period.

One analogy-not mine, but can't give credit cause never caught dudes name, is that the current economic circumstance is like being in a car that’s about to go over a cliff;

You can slam on the brakes, and tip over the edge rolling down the hill.
OR;
You can floor the gas pedal and go sailing out over the edge and fly through the air-though this slightly delay the act, your still going to crash-and your now going to hit 100 times harder.

So basically this means yes it will hurt to do nothing, but it will hurt even worse to throw this money into this bottomless pit.

The current story is that its the fault of "lying Americans that have taken out mortgages, and loans with no intent and no means to pay them back", this is what the European news is telling people-NOT what we are hearing on the north American news.

The fact is that the entire “house market-mortgage hole” can exceed no more than approx 60-100 billion dollars, so why is the suggested total payout over 7 times this amount?

Because the Corporations that are claiming to be broke want to destroy the whole American, and world ecconomy and system.

These corporations heads, and controlling figures have Pocketed the lost money-the ONLY people that have actually lost money are those that invested-which means they are mostly just citizens that are getting screwed.

Now this money if its given over, it won't reconstruct the working mans coffers, But It WILL go straight into the pockets of the Industrial “Elite” and the World Bankers A.K.A. “Banksters“. At the same time the people of this country, are “chained” to a Phoney Debt, that connects up to many companies & other countries and this ‘debt chain’ will collapse with the “domino effect” of bringing down many of the worlds economies-the end plot is about the “Elite” gaining even more control over tangible assets and things of REAL material value-Now lets be Frank and Honest-this so called "money" is truly nonexistent-its simply 1's and 0's on computers-there is no hard currency to back it up; Its 100% imaginary.

So the only way to release yourselves from this phoney debt that has been throw over us like a dirty net, will be "presented" as, the giving of all our Land, that’s Public and Private, all our Buildings, Businesses, Factories, Infrastructure and Utilities {I.E. state run electricity, water works, ect.}, all the water courses {I.E. Streams Lakes Rivers, Ect.}, and all the minerals and gasses-ALL OF WHICH ARE THE ONLY REAL MATERIAL WEALTH THAT PEOPLE CAN HAVE-giving possession of the "ALL" so that we can be freed of debt-a debt that we did not create, and which for a debateable fact doesn't even exist, in the real world.

YES this is Sad~YES its also Scary, but you can't shy away from it and hide, Nor can you turn your head and pretend its not happening.
Its all right in front of you-all the information you need all the proof is available-the people that are pulling the strings have documented it.

GO to Alex Jones' InfoWars.net: Manning the guns in the fight against tyranny , go to Alex Jones' Prison Planet: The truth will set you free! , and go to COAST TO COAST AM WITH GEORGE NOORY and listen to last nights stream link of the coast to coast am radio program-its is an extremely good eye opener, and acutely relevant detailing of this current affair.

Tell your friends and your family-get people informed-wake up people because it will take everybody to stop this-probably it would come to a general strike, that’s where everyone stops work-the whole country-and says “We are the people, this is Our country, You are Our government and You will do as we say NOT as You choose, or we won't work.”-this is probably the only way to stop this thing.

The only way that can this can happen, is if you inform people-wake people up- get people to watch videos like Terrorstom II and ENDGAME on you tube.

This is serious-this is vital-and you need to be a part of it. This may just be the most important & significant time, in all of our lives.

Spread The TRUTH!~Peace from Tha DUB

Try again - that's 7B.

The real number is:

700,000,000,000

And anyway by the time it's all over the alleged number from many sources will be about two TRILLION dollars.

2,000,000,000,000

Like I said in another thread, our government is turning Socialist with all of the nationalization of companies such as AIG. At least, with the AIG deal, we have a stake in Manchester United. And like Proper said, AIG is a major company that has influences across the globe. It's a nice investment for America, which I cannot say the same about some of the other companies that they are buying up and bailing out.

Only other thing I can comment on is:

The war ended when we retrieved Saddam. We are now in a conflict. The conflict is necessary because it gives the Americans a strategic point in the Middle East in the event of an attack by Communist China and/or Russia.

That's actually a point I forgot to make.

Since the government is getting an 80% stake in the world's largest insurer, then we'll have made billions in profit even by the first quarter 2009 assuming no major fuckup, which I'm not really willing to do....

ppl in america are too lazy and selfish to actually get together against the government. I would love to see the day where that would happen.

One reason they are too lazy-not the only reason, but one of the factors-Fluoride. Its a waste chemical that comes out of the process of making aluminium, that is a toxin-therefore costly to dispose of and Big corporations came up with a most ingenious plan.
Make people think that a poison is a medicine-get them to take said poisonous toxins and dump them into their water supplies-a picture of beauty, right?.
Not only is fluoride a carcinogenic toxin it also has the property of making people lazy-for example, the Nazis used it on prisoners in the concentration camps to help keep them cooperative.

The true elites and Super Rich people that run everything don’t care about the regular people we are lower than dogs to them we are cattle and the only reason they have yet to kill us all off, is that they enjoy playing with us we are their giant Go game or chess board. One way the “play with” or control us-and keep us to tired and mentally offset to see this is by putting us into the never ending rat maze of the modern work force lifestyle, they make a competition of us between themselves, by see who can make the most profits off of us. So look at Big Pharma, And Big Medica, those are the corporations that make our pharmaceuticals, and are suppose to help us when we are ailing but they have been made into for profit empires, if you want to make money here is the most perfect way ever:
Make someone sick by allowing a toxic product into the food chain-lets pick one thing say….aspartame{btw the reason these horrible substances get into our food is simple and the same THE FDA is also a big corporation that wants to make money so it’s the ol‘ circle jerk at work}Now you have people ingest this toxin called aspartame and it makes them ill with any number of about 100 symptoms, lets say headaches, then you prescribe them a pharmaceutic medicine-how about ty3 w/codine for this ailment and they go home and take the pills, after awhile the ty damages the liver and now they need more medications for that-and so on and so on.

So Now you know why every drug out there has side effects, its simply so they can sell you one drug after another to cure the problems that they create and every pill costs a bundle.

WHY cure cancer-when you can make soooo much more money by “treating” it?

WHY cure anything, when a cure will only be sold once, when you can sell someone a treatment, and keep them on payments for the rest of their lives?

In Fact-WHY not create all kinds of new diseases and maladies that you can create even more treatments for?- Oh I forgot they already do that and have been for decades…..


THE AMERICAN DREAM NEVER HAPPENED.

WELCOME TO THE AMERICAN NIGHTMARE………..