AIG reportedly near deal on new government bailout

NEW YORK — American International Group Inc. late Sunday was reportedly near a deal for a revised bailout package from the U.S. government that would make borrowing terms easier for the troubled insurer.

A proposed $123 billion bailout package would be replaced with a new $150 billion package, according to the Wall Street Journal.

Details of the arrangement could be announced as early as Monday, when AIG is scheduled to report its third-quarter results, the Journal said. The plan reportedly would replace an $85 billion two-year loan with a $60 billion five-year loan at a lower interest rate.

The government also reportedly would inject $40 billion into AIG in exchange for preferred stock.

AIG representatives were not immediately available for comment.

The government had earmarked $85 billion in September for AIG's rescue. Another $37.8 billion was made available in October.

Comments

[haramagoti]

It was brought out on Democracy Now not a couple of weeks ago that AIG could not account for, around $100 million dollars+ of bailout funds, and that there didn't appear to be any trace of that money whatsoever, with AIG admitting they didn't know where it had in fact gone. That may have just been practice.

[Carolab]

Why does this remind me of the "missing" Pentagon money the day before 9 1 1?

[Indubio]

I can understand the need to prop up financial markets; if they go belly up, the situation will only become much worse for everyone including all those who gripe about a bailout (they'd gripe a lot more if unemployment reached 30% and included them). Here's what I don;t understand: That the terms of the bailout don't entail removal of the people responsible for creating the need for it.We don;t know if CEOs and boards of directors are guilty of any crimes but we know for sure that they are guilty of incompetence. It seems to me that in return for public support, the public should request the resignation of all executives without the usual executive compensation. The roll of each individual could be reviewed and those not guilty of incompetence could be rehired or reappointed. These seems more than reasonable.

[GerryS]

$85b

[hanfrac]

I don't want my money going into $40 billion in preferred stock. As of right now, the entire company's stock is worth no more than $6 billion. Why would we want to buy a $40 billion stake in a company that is worth $6 billion?

[jacobnyc]

THIS IS F***ING RIDICULOUS!!! WHO THE F IS GOING IS GOING TO PICK UP THE TAB?!?

NO WAY! I DON'T CARE IF YOU GO BELLY UP. NO MORE BAILOUTS!

[darthdarcy]

Welcome to the, New World Order..!

[4peace]

We-bin-had.

[leftLibertarian]

The poor executives need more money to buy new jets for their mistresses.

[Left-Hand-of-Darkness]

How about incarcerating their Board of Directors for fraud? It would be cheaper. If I did what they have done, the FBI would be at my door yesterday. Enough with protecting blatant corporate criminals. RETURN THE RULE OF LAW.

[Carolab]

These are the PUNKS who jobbed us in the first place on the credit default swaps.

NO MONEY FOR AIG. NO MORE.

[proreality]

AIG's exposure to the derivatives markets is more than the GDP of the entire world. Gold-man sach's is greatly exposed to this. Now look at all the the Goldman sach's execs involved with this scam bailout. This is a joke, it is bush and his cronies stealing the china and silver on the way out the door. AIG has already burned through a large portion of the money made available to them with absolutely no oversight or accountability, no body knows where the money is going or what it is being used for, besides billions in bonuses. When are these people going to hang?

[Carolab]

Not to mention the Carlyle Group's ties to AIG.

[causticgit]

In the words of Amy Poehler and Seth Myers... "OH MY GOD, ARE YOU SERIOUS!? REALLY!?!?"

[falco]

Has anybody done any research about AIG and seen what a bunch of crooks they are? And we are bailing them out? And the bail out is not $85 billion anymore but now $123 billion? Somebody, help me out. Help me understand why our government would do this to it's people.

[AuntSally]

$150 billion... and counting..­..

[Carolab]

Yeah, and just research Hank Greenberg and Greenberg-Traurig and Abramoff and Larry Silverstein. It's a real hoot.

[Carolab]

As David Rockefeller explained it to Aaron Russo in "Freedom to Fascism", because they CAN.

How sick is that?

[MuseScavenger]

Holy crapola! Didn't they just blow millions on a junkett to some city of moral terpitude for their executives after their first bailout? Nationalize these profligates and turn a profit for the taxpayers.

[tom12010]

this company must have a lot of power over the bush administration to be able to steal so much taxpayer money.

[gracieloufreebush]

They must of donated alot of money to the Republican party. Bet they also haven't paid much, if any, in corporate taxes over the past years too.

[leftLibertarian]

Why did so many democrats vote for the bailout?

[playera]

I heard someone talking this weekend about how deeply involved Bush treasury officials are in managing this bailout. They have the best talent managing the details.

The problem is they're all Bush officials, which means they'll be out in a few weeks AND they'll all be looking for a job. Well, I wonder where those new jobs are going to be for former Bush officials and beuereaucrats who really know the ins and outs of the bailout regulations?

With the bailout recipients, maybe!!!

Here's the hook......­. You'll get your bailout if we get your jobs.