On the 10th of November, the AIG Company reported a loss of $24.5bn from July to October. This announcement led to a $40bn infusion from the government by purchasing preferred shares of AIG stock. In total, AIG got a $150bn aid divided as following:
– 60bn loan
– 50bn in capital
– 40bn preferred stock
For this new injection, the Federal Reserve is reducing the previous $85 billion loan it had made available to AIG to $60 billion and is also replacing a separate $37.8 billion loan to the insurance company with a $52.5 billion aid package.
I personnally think that this bail out won't be the last one for the firm in trouble. How much money does the Federal Reserve is ready to put into AIG ?
Where is this money really going ? When we know that the chairman and some employees took few days in the California’s St Regis resort in Monarch Beach spending $400 000 in rooms, meals, drinks, golf and spa treatments we can ask ourselves if the money is used in the best way! Unfortunately, some aspects of the big companies will remain unknown!
– 60bn loan
– 50bn in capital
– 40bn preferred stock
For this new injection, the Federal Reserve is reducing the previous $85 billion loan it had made available to AIG to $60 billion and is also replacing a separate $37.8 billion loan to the insurance company with a $52.5 billion aid package.
I personnally think that this bail out won't be the last one for the firm in trouble. How much money does the Federal Reserve is ready to put into AIG ?
Where is this money really going ? When we know that the chairman and some employees took few days in the California’s St Regis resort in Monarch Beach spending $400 000 in rooms, meals, drinks, golf and spa treatments we can ask ourselves if the money is used in the best way! Unfortunately, some aspects of the big companies will remain unknown!
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