AIG Uses $61b of $85b Fed Loan, Revenues Cut In Half By Asset Sales
The NY Times reports that AIG has used $61B of its $85b Fed loan. And the Financial Times reports that, as they sell divisions to pay back the loan, AIG revenues could be cut in half by asset sales. In mid-September, AIG came under extreme short-term pressure as an untold number of claims on credit default swaps were coming due. Here is a summary of the
saga that led to AIG’s $85b Fed loan, and how it may actually work out for taxpayers.