Fed lends $80B to AIG; Wall Street tumbles
The Federal Reserve has extended a two-year $85 billion line of credit to American International Group, Inc. Federal officials said a fire sale of AIG assets could further damage the economy. AIG has promised to repay the loan, presumably from a more controlled sale of assets, at 11.5 percent interest. The line of credit is greater than the state of Nebraska's GDP last year (just over $80 billion).
Wall Street, apparently, was unimpressed. The stock market this morning has already given up yesterday's gains, dropping 200 points in early trading.
Wall Street, apparently, was unimpressed. The stock market this morning has already given up yesterday's gains, dropping 200 points in early trading.
About this blog
Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.
Your hosts:
Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
e-mail
Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
e-mail
Your hosts:
Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
Leave a comment