AIG wants more money from the government The Wall Street Journal reports. It doesn’t quite put it in those terms. Instead, according to the report, the AIG hopes the government might reduce interest rates on its loans, help backstop CDS obligations, or extend the duration of its current two-year loan facility. But all these are just fancy ways of saying AIG needs more money. That’s what stretching out a loan or reducing the interest rate is.
Whoever pushed this story on The Journal — probably someone from AIG — is already hitting key talking points. Get this, if the government backstops AIG’s CDS exposure “Some cash may flow back into government coffers if collateral AIG already has posted is returned.” Sweet, profit!
Meanwhile, plans to sell of AIG lines aren’t going as fast as expected due to the rough economy. Didn’t see that one coming at all.
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