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AIG: Details of Its Punishing Bailout

Aig is just getting a 2 year loan secured by collateral (79.9% of AIG shares). Its just a two year Loan @ almost 12 & interest. Period.

The Government would get to keep the shares if AIG defaults on the loan...buy they have two years to pay it off....and I bet it gets paid off within 6 - 10 months (maybe faster).

Then the shares have to revert back to AIG.

The way you tell it is that the Gov charges 12% interest for a two year loan and then keeps all the collateral securing the loan.

That does not make sense on any planet.

Peace,
Dan

AIG: Details of Its Punishing Bailout

AIG has assets of 1.1 Trillion dollars....they should be able to pay back the Government in 6-0 months. The $84 Billion is only 10%-20% of the companies total value...they will survive and even flourish.

Peace,
Dan

BTW: They put those shares up as collateral...If the loan is paid on time...the shares should revert to AIG.