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Fed's $85 Billion Loan Rescues Insurer

Offbeat  (tags: Federal Reserve, government, U.S., AIG, loan, insurer )

- 3957 days ago -
Fearing a financial crisis worldwide, the Federal Reserve reversed course on Tuesday and agreed to an $85 billion bailout that would give the government control of the troubled insurance giant American International Group.


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Eduardo L (101)
Wednesday September 17, 2008, 12:46 pm
The decision, only two weeks after the Treasury took over the federally chartered mortgage finance companies Fannie Mae and Freddie Mac, is the most radical intervention in private business in the central banks history.

Eduardo L (101)
Wednesday September 17, 2008, 12:50 pm
The Federal Reserve was close to a deal Tuesday night to take
a nearly 80 percent stake in the troubled giant insurance
company, the American International Group, in exchange for an
$85 billion loan, according to people briefed on the

. (0)
Wednesday September 17, 2008, 7:07 pm
It is fairly certain the author of this article does not understand who is going to benefit from this bailout. The Federal Reserve Bank is NOT a government institution; it is a privately owned bank. Are taxpayers putting up the 85 billion or is the Federal Reserve making the loan with taxpayer money? Who is going to get the 8% interest that will be generated with the repayment of the loan; the U.S. Treasury (taxpayers) or the Federal Reserve (privately owned) Bank?

Linda B (71)
Saturday September 20, 2008, 4:01 pm
Unbelievable. I guess Bush REALLY wants to make sure this country is completely broken before he leaves office. But why?

Eduardo L (101)
Saturday September 20, 2008, 4:05 pm
That's very true, Linda! We won't be able to pay back the debt in a generation or two. It will keep us become slaves forever.
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