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- Amount of loans: About $180 billion
- Amount of first loan: $85 billion loan in in September 2008
- Raised to $150 billion in November 2008
- Second loan granted in March 2009
- Federal Reserve received 80% stake in AIGThe New York Times: Fed to Give AIG $85B Loan and Take 80% Stake (September 16, 2008)
- AIG was on verge of bankruptcy due to mortgage crisisThe New York Times: Fed to Give AIG $85B Loan and Take 80% Stake (September 16, 2008)
- Loan designed so AIG could sell assets without declaring bankruptcyThe New York Times: Fed to Give AIG $85B Loan and Take 80% Stake (September 16, 2008)
- Federal Reserve acted only after efforts to secure private loan fell throughThe New York Times: Fed to Give AIG $85B Loan and Take 80% Stake (September 16, 2008)
- Second loan was granted to help AGI copy with a record loss of $61.7 billion that was reported in the final quarter of 2008Los Angeles Times: Feds give AIG $30 billion more (March 2, 2009)
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The Federal Reserve bailed out troubled insurance company American International Group (AIG) with an $85 billion loan on September 16, 2008. In return, the government received an 80% stake in the company. On November 10, 2008 the government raised the loan to $150 billion. AIG received an additional $30 billion on March 2, 2009.Los Angeles Times: Feds give AIG $30 billion more (March 2, 2009)
In the first week of April 2009, a special inspector general for TARP began an audit of AIG, a reaction to third expansion of the bailout. In particular, legislators want to know if AIG paid more than necessary to banks like Goldman Sachs.Bloomberg: AIG’s Bank Payments Probed by TARP Inspector General (Update3) (April 7, 2009)
The Reason for the Bailout
Without the influx of cash, the massive insurance company would have had to file for bankruptcy, a move which could have sent world financial markets into a tailspin.The New York Times: Fed to Give AIG $85B Loan and Take 80% Stake (September 16, 2008)AIG Bonuses
AIG has paid out several bonuses since receiving the federal loans, but the most criticized bonuses were paid out in March 2009. The bonuses amounted to a total of $165 million. The decision to pay the bonuses despite the fact that AIG received over $170 billion in federal rescue funds was met with outrage by some. President Barack Obama said his administration would attempt to block the payments. AIG said it was contractually obligated to pay the bonuses.CNN Money: 73 At AIG Received Bonuses Of $1 Million Or More (March 17, 2009)AIG Aircraft Leasing
On April 7, 2009, media sources reported that the Federal Reserve plans to provide AIG's aircraft-leasing unit a $5 billion line of credit. The line will help AIG prepare to sell off the business, which is believed to be viable if it could be separated from AIG.Bloomberg: Federal Reserve Said to Offer $5 Billion Credit for AIG’s ILFC (April 7, 2009)-
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AIG Bailout on Amazon
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TARP Town U S A - $8.75
The United States experienced the emergence of an economic crisis in the last quarter of 2008 that was the worst since the Great Depression. It quickly became evident that the caus...Amazon
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60 Minutes - We Own It (May 17, 2009) - $17.95
Airdate 5/17/2009 Of all the corporate bail-outs this year, none has been more costly or contentious than the rescue of AIG. The insurance and financial services conglomerate has ...Amazon
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AIG Bailout Questions
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Was there inconsistency in deciding too saving AIG but not Lehman? 1 AnswerLehman was technically not regulated and AIG was because it was regulated as an insurance company...there were many inconsistencies that will be debated for man... read more -
How will the risks associated by the AIG mortgage risk investments be distributed? 1 AnswerSome risk accrues to stockholders and creditors. A small loss might only cost stockholders money. A medium sized loss could wipe out equity and some debt migh... read more
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Bailout this, bailout that...what past company do you think could have used a bailout? 6 AnswersProbably a bunch of small businesses proportionately spread around the country to help out the problem of losing business to corporations. Places that had senti... read more -
Should students get a bailout? 5 AnswersIf you honestly look at this from a financial perspective, 6.8%-8.5% for an unsecured loan is completely reasonable. Mortgages have real estate behind them, as... read more
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On Twitter Powered by Twitter
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Redmond's convicted predatory monopolist and LA's AIG bailout recipient wield their fasces in DC with Rhee http://bit.ly/402FRz #edreform
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RT @jwhof: Promises, promises: AIG bonus return pledge mostly unfulfilled http://bit.ly/4Ohlrr #bailout
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Top AIG execs pledged return of $45 million in bonuses, but now have reneged. Bailout of AIG cost us $180 billion. http://twurl.nl/hoat2a
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AIG fails to keep pledge to return bonuses #bailout #fail #corruptGov http://flne.ws/22437799 on Fluent News
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