Sunday, March 1, 2009

Dear AIG, it's so over

AIG will receive up to an additional 30 billion, under the government's 4th revised plan for bailout since last September.

Should we continue to bailout AIG? Or, should we ask the federal government to slowly phase out AIG and put an end to it's misery?

AP News: "An AIG spokesman was not available for comment. The Federal Reserve Bank of New York, which is handling the government loan, did not return requests for comment Sunday afternoon. Treasury Department spokesman Isaac Baker declined to comment.

The company’s board is scheduled to meet Sunday to vote on the revised bailout.

Major credit rating agencies have already signed off on the deal. Without the support of the credit rating agencies, AIG would have faced crippling cuts to its ratings.

AIG has been forced to seek more help because of a combination of factors including the recession and its falling stock price, now well under $1. Perhaps its biggest problem has been that asset sales that were supposed to help the company pay back government loans aren’t happening, in part because the credit crisis that initially landed AIG in trouble last summer is also preventing would-be buyers from getting financing to complete such deals."

The entire post can be read here:

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