AIG second bailout: $150Bn

The fun never stops. A huge bail-out package is announced this morning to the tune of $150Bn. That is a big number for ONE company. It goes to show that risk distribution via CDS was a bit of a mirage. CDS ended up concentrating at the re-insurance level a.k.a AIG. It does provide a big fat target for the mother of all corporate bailouts.

From the FT:


The renegotiation of the bail-out, which could be politically controversial, came after AIG rapidly used up most of the government original facility, raising fears that it could run out of cash.


The first wad of cash was $85Bn. They burnt through that money in a blink. AIG is nationalized at 85%.

Comments

pcleddy said…
Good morning, Amerikka!

"AIG on Sale"

Let's all buy in. Just dream of the pheasant hunting we can do on the Lear, out the windows.

Zoom round in the Tesla.

Martinis and servants in high heels.

The Amerikkan dream.
November 11, 2008 at 7:04:00 AM PST
adt43wt342 said…
Hey! don't zing the tesla!

I don't drink martinis, I don't hunt, I fly coach (4 kids).
November 13, 2008 at 1:07:00 AM PST
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