AIG Cash Burn rate Skyrockets: Back to the Well subject logo: BUSINESS
2008-11-08
Posted by: badanov

More bad financial news with the federal government tit sucking AIG.

From TFA:

would reduce the interest rate to be paid by AIG and possibly the overall amount it has to repay. An extension in the term of the loan from the current two years to five years is also possible, according to people close to the situation.

The renegotiation of the loan could be accompanied by the government’s purchase of billions of dollars in mortgage-backed securities whose steep fall in value has been draining AIG cash reserves.

AIG is also proposing the government buy the bonds underlying its troubled portfolio of credit default swaps in exchange for the roughly $30bn in collateral the company holds against the assets.

From

If you have something to add,
Fire Away!

Number of Comments so far: 0

Click here for a list of stories in the Business and Economics category