Posted on 03/01/2009 9:42:49 PM PST by Justaham
American International Group (AIG: 0.4299, n.a., n.a.%) and the federal government will announce a major restructuring of the insurance giant’s government bailout Monday morning that will commit the Treasury Department to invest up to $30 billion in new equity in the company if it needs it, a person familiar with the negotiations told FOX Business.
The company will also give large stakes in two subsidiaries to the Fed, to repay most of the $38 billion it has borrowed from the central bank under an existing $60 billion credit line, the person said.
(Excerpt) Read more at foxbusiness.com ...
It all seems ironic in some sense. Our government, that hasn’t been fiscally responsible for a very long time, and that is trillions of dollars in debt is ‘bailing’ out the banks?
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