[too_cool_for_skool]

The $85,000,000 came with strings attached: 2 year loan, LIBOR + 8.5% interest rate (~10%), management fired, federal government gets 80% control. Loan is to be paid off by liquidating the company.

Existing shareholders just got wiped out. Instead of declaring bankruptcy overnight, AIG is going to be dismantled over two years.

[Petronski]

The $85,000,000 came with strings attached: 2 year loan, LIBOR + 8.5% interest rate (~10%), management fired, federal government gets 80% control. Loan is to be paid off by liquidating the company.

THANK YOU for posting that.

Let me take a few HTML liberties with your quote to clarify this for those readers misunderstanding what happened:The $85,000,000 came with strings attached: 2 year loan, LIBOR + 8.5% interest rate (~10%), management fired, federal government gets 80% control. Loan is to be paid off by liquidating the company.