Frankly, I wish they send a check directly to me instead of AIG, GM, Ford, etc. I'll spend the money, putting it back into circulation. Pouring money directly into the vaults of these companies does not do a thing ignite the economy!
AIG to get $30/b lifeline
By Francesco Guerrera in New York
Published: March 1 2009 18:10 Last updated: March 2 2009 14:12
AIG’s board on Sunday approved a radical plan to give the government a controlling stake in two of the stricken insurer’s largest divisions in exchange for a new $30bn-plus lifeline from the US authorities.
Under the deal, the third government rescue of AIG since September, the US Treasury and the Federal Reserve will provide around $30bn in fresh capital to the insurer, lower the interest rate on a $60bn-loan and ease the terms of a $40bn preferred share investment. People close to the situation said the $30bn would not be injected immediately but would be provided as a standby line of equity that AIG could tap as its losses mount.
