Terms Of The Bailout
I have some information on the Bailout of the insurance giant you should understand.
The Gov't set up a revolving credit account for the company at what is now 11.3% (it's LIBOR plus 850 basis points). Granted it is huge loan. If the insurance company draws it all down, the interest payments will be around $50 million per month. Management has been replaced, and they are currently in the process of planning selling assets to repay the loan.
The Gov't actually stands to make significant money as a result of this deal.
So while the press has played it out as a taxpayer bailout (in its usual "The sky has fallen" mode), it's probably better described as an investment or a partnership.
Don't believe everything you hear or read.
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