Sunday, November 09, 2008

Footnote to the preceding

In case you wanted a little more evidence.

CNN reports tonight that
[e]mbattled insurance giant American International Group, set to reveal its latest financial results on Monday, is reportedly close to securing a new bailout deal from the federal government.

The Wall Street Journal, citing sources familiar with the matter, reported Sunday evening that AIG's board was close to approving significant changes to the terms of the $123 billion in loans extended so far, and might announce a revised $150 billion deal as early as Monday.
The revised deal would see the feds cut the interest rate AIG is paying,
stand behind billions of dollars in credit default swap agreements [and] backstop AIG's business of securities lending.
The real thing to notice here is that the original terms from September were for an $85 billion bailout deal. If this new deal comes through, the increase in AIG's bailout over the past seven weeks or eight weeks will be greater than the total value of the economic stimulus that failed to pass in October.

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