Federal Reserve Announces $85b AIG Bailout
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
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
