Sponsored Content
« Overnight open thread (genghis) | Main | Top Headline Comments 03-02-09 »
March 02, 2009

AIG Bailout No. 4

Hold on to your butts. Tomorrow (that is, Monday), AIG is expected to announce the single largest value loss of suffered by a company in a single quarter. The announcement will be made concurrently with the announcement of AIG's latest bailout from Treasury. This will be the fourth AIG bailout.

Previously, we the taxpayer had given the ailing insurer an $85 billion line of credit for two years plus interest at LIBOR + 8.5 percentage points (AIG Bailout No. 1). That was reduced to $60 billion to be repaid over five years at LIBOR + 3 percentage points (AIG Bailout No. 3). Now it gets reduced to $25 billion credit for a term of five years plus interest at LIBOR.

We had also offered $40 billion in TARP funds (AIG Bailout No. 3) and are going to offer another $30 billion now.

We also exchanged $38 billion for some of the company's illiquid securities (AIG Bailout No. 3); they will allegedly be purchased back at some point; if not, the taxpayer takes them as is.

In exchange for all this, we are now the proud owners of equity warrants amounting to 79.9% of AIG's shares. WAF.

Guys, I don't know what to write about this stuff anymore. They're doing it; they say they have no choice but to do it; and the people who could choose otherwise (the President or Congress if they yelled loud enough) aren't inclined to do anything different.

The credit-rating agencies were included in the deal negotiation and have promised not to downgrade the AIG's debt after tomorrow's announcements. That's the whole point of the doing all this on the same day, since everyone expects the whole world to melt down (too many pensions and institutions who are required by law to only keep investments with a certain credit floor would have to bail) if the credit-rating agencies put AIG in the dumps.

digg this
posted by Gabriel Malor at 02:23 AM

| Access Comments

Recent Comments
Aetius451AD Work Laptop: "Pixy is up. ..."

Skip: "G'Day everyone Biden 's Dog if I knew you wo ..."

Biden's Dog sniffs a whole lotta malarkey,: "BOING! ..."

JmT: "Skip, stop looking at Bad Blue and American Conser ..."

Skip: "Probably up, and no need to be ..."

Puddleglum at work: "https://youtu.be/GNmppnfgBB0 A Flock of Seagull ..."

Puddleglum at work: "[i]I was pretty stunned recently to learn that my ..."

JQ: "Not the Hammond B3. ARP 2600 FTW! youtu.be/65XS ..."

ShainS -- The Abolition of The West is from Men Without Chests [/b][/i][/s][/u]: " Ian Anderson (Jethro Tull) playing Faure's "Pavan ..."

Aetius451AD Work Laptop: "Night Bulgar. ..."

JT: " Yeet Posted by: nurse ratched Yoot ..."

Bulgaroctonus : "Goodnight, All. ..."

Recent Entries

Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64