Fed nears a deal to take over ailing AIG

Dandelion Salad

msnbc.com

Sept 16, 2008

NEW YORK – The Federal Reserve is close to a deal to take an 80 percent stake in American International Group in exchange for an $85 billion loan, according to sources familiar with the negotiations.

AIG’s failure could open the ugliest chapter yet of the financial meltdown.

“The glimmer of hope has turned into a ray of hope,” said the person, who asked not to be named because of the sensitive nature of the talks to help AIG.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke met with members of Congress to brief them on options the government is considering. The meeting ended without Bernanke and Paulson commenting.

[…]

Fed nears a deal to take over ailing AIG – U.S. business- msnbc.com.

h/t: CLG

see

Fed takes control of troubled AIG, will lend it $85 billion

How the Masters of the Universe ran amok and cost us the earth

US Economy: Rudderless and Reeling From Direct Hits – A raid on private pensions? By Paul Craig Roberts

The Wall Street crisis and the failure of American capitalism

Lehman, Bear, Freddie, Fannie: What Does It All Mean??? by Josh Sidman

Capital Punishment: Lehman on its way to the Gallows? By Mike Whitney

Marc Faber about Lehman Brothers bankruptcy

Wilbur Ross: Possibly a Thousand Banks Will Close + Nouriel Roubini: If Lehman collapses expect a run

Merrill now in shorts’ sights as Lehman crumbles

The Economy Sucks and or Collapse