Fed, Treasury Announce New Bailout for AIG
As expected, the Federal Reserve and the Treasury department this morning just announced a bigger, reworked bailout for insurance giant AIG. The firm announced that it lost $24.5 billion in the most recent quarter as it struggled to recover from its heavy losses in the credit default swaps market and restructuring. The Fed and Treasury announced they have reworked the bailout package, much of which the company has already spent, and will provide an additional $40 billion to the company in exchange for partial ownership.
The news comes as officials in Congress and taxpayer groups are raising concerns about the Treasury's expanding authority and bailout assistance being provided to banks, and now, pressure to help out automakers. In today's Post, reporter Amit Paley reveals how Treasury quietly delivered a windfall for banks through a notice that allows companies to save millions in taxes.
Asian markets rallied today on the news that China would provide $586 billion in a new stimulus package aimed at ensuring its fast-growing economy won't be dragged down too far by the global recession many believe is underway. The DJ Shanghai index rose 7.6 percent and Japan's Nikkei rose 5.8 percent.
In Europe, the markets so far are also positive. The DJ Stoxx index is up 2.7 percent, led by France's CAC, up 3.7 percent and London's FTSE, up 3.5 percent.
Posted by: macebruce | November 10, 2008 10:28 AM | Report abuse
The comments to this entry are closed.