Or close to it, in a market-friendly way.
AIG is not getting bailed out. Their balance sheet is so complicated that the Fed is going to help with an $85 Billion loan/financing/help in exchange for warrants which will represent 80% ownership (or so) of AIG when all is said and done. Giving away 80% of your company and control of your destiny is far different from being bailed out.
Futures are surging as further collateral damage is far less likely.
It turns out that AIG is too big to fail, Lehman wasn't. Putting aside the idea that Credit Default Swaps were a bad idea as used to start with, let's hope those that are too big to fail come under much greater scrutiny going forward.
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