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AIG Gets Another $30B Taxpayer Dollars

From the ever trusting Associated Press:

Gov’t Extends New Aid Package to AIG

Government extends new aid package to AIG, including fresh $30 billion ‘as needed’


WASHINGTON March 2, 2009

The government on Monday unveiled a revamped rescue package to insurance giant American International Group and will provide the troubled company with another $30 billion in taxpayer money on an "as needed" basis.

The new package comes as AIG has burned through cash and been unable to find buyers for pieces of its company that it hoped to sell to repay the government on its existing aid package, which totals some $150 billion.

In an interview on NBC’s "Today" show Monday morning, AIG Chairman and Chief Executive Edward Liddy said: "We’re going to be able to pay back the Federal Reserve. The new $30 billion is a standby line. It’s not necessarily something that we think we’ll have to draw on right away." …

The announcement came as AIG, once the world’s largest insurer, reported Monday it lost $61.7 billion in the fourth quarter, the biggest quarterly loss in U.S. corporate history.

Under the new package, the Fed will take up to a $26 billion stake in two international units — Asia-based American International Assurance Co. and American Life Insurance Co., which operates in 50 countries. The Fed also will make $8.5 billion in new loans to benefit the domestic life insurance subsidiaries of AIG.

It marked the fourth time the government has stepped in to help AIG. Its initial lifeline came in September, when the government effectively seized control of the company, taking a nearly 80 percent ownership stake and replacing top management…

The fresh $30 billion will come from the government’s $700 billion financial bailout pot. AIG will be allowed to draw the money "as needed over time," the government said. The company received a $40 billion cash infusion from the bailout fund in November, when the government last revamped AIG’s rescue package.

Meanwhile, AIG’s credit line with the Fed was cut to roughly $25 billion from $60 billion.

All told, the net effect of the new bailout package provides AIG with an extra $30 billion, Treasury and Fed officials said…

This means that the US taxpayer is on the hook for up to $180 billion dollars, just for AIG alone.

Lest we forget, the entire ‘Savings And Loan’ crisis of the late 1980s and early 1990 only cost the US taxpayer about $160 billion dollars.

This article was posted by Steve on Monday, March 2nd, 2009. Comments are currently closed.

One Response to “AIG Gets Another $30B Taxpayer Dollars”

  1. Liberals Demise says:

    ………and people went to jail. Unlike here where the criminals are running around with the TAXPAYERS credit card.

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