Federal Reserve Announces $85b AIG Bailout
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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