Government announces $85 billion loan to save AIG

Tuesday September 16, 9:04 pm ET

Government announces $85 billion loan to rescue AIG to stave off further financial turmoil

WASHINGTON (AP) — The U.S. government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG, The Federal Reserve said Tuesday.

The Fed said the U.S. Treasury Department was in full support of the decision.

The Fed determined that a “disorderly failure” of AIG could undermine already fragile financial markets.

The government will receive an 79.9 percent equity stake in AIG, the Fed said.

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2 Responses to Government announces $85 billion loan to save AIG

  1. britishpolitics says:

    I don’t think the Fed has a choice because the ramifications if they had not intervened, the impact would have been felt around the world. When the financial markets have settled down, there needs to be a period of reflection and if necessary, more regulation and oversight in the this sector.

  2. Jason says:

    I agree there are no good choices now. This is years in the making. In the end there is no free lunch. You cannot spend money with no regard to how you’ll pay for it. Be you an individual, a company or a government.

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