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.