WHO ok'd Bailout

[meriboo]

This week alone the Government has bailed out Insurance giants, Financial banks, let alone the previous bails outs, just exactly who in the government OK'd the bail out, President Bush,..... Sec. of Treas......congress?

[SteveFromNY]

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.

[samhass]

Steve is correct. I posted yesterday that the interest rate was 11%. I hope AIG will sell off enough assets to pay off the govt PDQ then go back to rebuilding the company. IMHO, it was a move the govt needed to make.

[TomW]

AIG has $30 worth of assets for every share of issued stock.

[SteveFromNY]

AIG has $30 worth of assets for every share of issued stock.

Tom, I'm not sure I understand where you're going with this. What are you driving at? :shrug:

[GMONEY]

what happens to the so called CEO or COO of these companies? does anyone really know? seems to me they should loose all the goodies they got. if you live in a mansion with 10 cars and bank accounts to choke a T-Rex, then those should be released to the Gov also.....