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By admin | October 10, 2008
AIG turns to buyers and borrowing. AIG (AIG) drew down another $9B from its government credit line, bringing its three-week Federal Reserve borrowing total to $70.3B. The bulk of the loan has so far gone to providing collateral to AIG trading partners on credit default swaps and covering losses in AIG's securities-lending program. As the threat of lending program losses grew, the Fed stepped in earlier this week and raised the original $85B emergency bailout loan to $122.8B. Meanwhile, AIG is racing to sell assets to pay off the Fed's loan, as frozen capital markets and falling stock prices 'put AIG in a severe cash bind,' but buyers have been hard to come by as financial markets continue to tumble. Down 25% yesterday, AIG's shares are down 5.9% in pre-market trading [5:52am].
Topics: Daily Updates |
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