Still in process, but...

[solarbird]

This is still in process, but it looks like the Fed is semi-nationalising AIG. It's not a true nationalisation since the Fed isn't quite the government, and isn't the treasury, but it looks awfully familiar. 80% ownership in exchange for US$85B in "loans."

I'd say "more to come" but I've got meeting tonight so can't; you're on your own.

Comments

[king-chiron.livejournal.com]

It's hard to say they shouldn't have done it, because the impact of AIG going under could have been nuclear, but I think leaving the shareholders 20% of the company was far too generous.

[silussa.livejournal.com]

With 80% of the stock, it's close enough. There's nothing stopping them from installing their own Board of Directors, forcing it private, or anything else they want to do.

It's odd that a so-called "conservative Republican administration" is probably turning out to be the most interventionalist in the financial markets of all of them.

[solarbird]

Well, that's what they did when creating Feddie Mac, so it makes sense it would carry forward.

Karl thinks they've opened a horrible can of worms, making any firm with CDO exposure a target.

Meanwhile, here's another badly-drawn chart o' freaky!

[epawtows.livejournal.com]

Odd, yes. Sometimes I wonder what a Kerry or Gore administration would had done differently if faced with a similar situation (presumably, they would have had to arrive there by different means).

[silussa.livejournal.com]

I suspect they wouldn't have gone there; too much of being accused of nationalization.

"Ancient Vulcan saying: Only Nixon could go to China."