Federal Reserve Announces $85b AIG Bailout
Government To Take 79.9% Ownership Stake in Insurance Giant
By IEVA M. AUGSTUMS and STEPHEN BERNARD, Associated Press | September 16, 2008
WASHINGTON — The American government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG, the The Federal Reserve said today.
The Fed said the U.S. Treasury Department was in full support of the decision.
RELATED: Statement of the Federal Reserve Board.
The Fed determined that a "disorderly failure" of AIG could undermine already fragile financial markets.The government will receive an 79.9% equity stake in AIG, the Fed said
