AIG Has Used Much of Its $123 Billion Bailout Loan

The Washington Post ^ | Oct 24, 2008 | Carol D. Leonnig

[RDTF]

The troubled insurance giant American International Group already has consumed three-quarters of a federal $123 billion rescue loan, a little more than a month after the government stepped in to save the company from bankruptcy.

AIG has borrowed $90.3 billion from the Federal Reserve's credit line as of yesterday, the bulk of it to pay off bad bets the company made in guaranteeing other firms' risky mortgage investments. That's up from roughly $83 billion AIG had borrowed a week ago, and the $68 billion level it reached a week before that. The news comes as the company's new chief executive warned Wednesday that the government's financial lifeline may not be enough to keep AIG afloat.

-snip-

[Eyes Unclouded]

“pfff no problem just give em more. “
-The Decider

[FlingWingFlyer]

You toss the bass turds a life jacket and they eat the damn thing!

[rom]

That’s okay, Helicopter Ben will just print some more!

[neodad]

Just give them more money. They’re too big to fail.

[februus]

Case of the Reversed Footprints ping!

[doc1019]

Party time over at AIG … on our dime. ;-)

[supercat]

Surprised?

[ken21]

aig’s squandered their political capital too.

[Diogenesis]

Dodd: "Barney, AIG and Freddie Mac just sent me a million dollars.
Let's send them more money and do it again.
Barney, for us, life is bowl of waitress sandwiches.
Money for nothing. And the chicks for free. "

[Frantzie]

They were supposed to be selling off the pieces of the company to pay back Uncle Sam. I am not sure what is taking so long. The AIG Valic piece is suppoedly worth $20 billion and big insurnace companies were looking at it. The Asian insurance piece was also in the range of $20 billion. The company has dozens of companies under the AIG parent.

[LikeLight]

aig’s squandered their political capital too

Yup.

[babbabooey]

Must be a thrill for Barney to ‘Butt-Slam’ 300 million people @ once.

[Las Vegas Ron]

Must be a thrill for Barney to ‘Butt-Slam’ 300 million people @ once

No kiss, no lube and he doesn't even call...till next time that is.

[Thinkin]

“You toss the bass turds a life jacket and they eat the damn thing!”

Couldn’t have said it better !!!!!!!!!!!!!!!!!

[RegulatorCountry]

They were supposed to be selling off the pieces of the company to pay back Uncle Sam. I am not sure what is taking so long.

Not many willing buyers in this environment. Everybody's hunkering down. A nice, fat Federal guarantee might do the trick, but that would undermine the point of the whole exercise, wouldn't it?

[VOA]

You toss the bass turds a life jacket and they eat the damn thing!

Needed to be repeated.

My role model is the guy at Merrel Lynch (that is being acquired
by Bank of America.
This week (Tuesday? Wednesday?) the Wall Street Journal covered the tale
of a "strategist" that came over from Goldman Sachs in September
2008 (yep, last month).

He won't be staying on with Merrell Lynch during the transition
to BofA ownership.

He's far enough down the Merrell command structure (maybe seventh
in line from the top?).

And he is NOT covered by the government requirements for companies
that will be taking taxpayers dollars.

For less than 2 months work:

Twenty-Five Million Dollars.

I got to hand it to the guy.
That's the sort of work I'd want!!!

[JasonC]

"I am not sure what is taking so long"

Um, the entire capital value of the planet plummeting 25% per month might have held up the buying frenzy a little...

[Leisler]

When we run out of trees, we will just go electronic. Plenty of electrons out there.

[jwalsh07]

Buy stock in printing ink.