Sounds good, but what happens to the money once it hits back in the Treasury? Who will manage it? Will it be spent on what or used to pay off the national debt,what is mandated?
Most of this is admittedly over my head and one of the reasons I like the see govt. out of the business of business.
“Sounds good, but what happens to the money once it hits back in the Treasury? ‘
Goes into the general fund.
Watch though. Now that the Feds are proposing a more systematic way to deal with the illiquid synthetics and MBOs the AIG share holders will raise the bitching. I heard some last week. I bet the insurance properties of AIG will bring far in excess of $85B. Plus I bet the Treasury will be able to sell the 12% notes way over what they paid for them. What would you pay for a 12% Federally backed note? What does TIB give you on deposits? I appreciate the moral hazard of having the Feds own even for a short time AIG. But the transaction is one that Romney would have been delighted to do at Bain. And those guys are the masters of this kind of stuff.
There will be the mother of all food fights.