Written by 1:54 AM General • 8 Comments Views: 4

AIG, Saved Before the Bell

The U.S. Federal Reserve has thrown AIG an $85 billion lifeline at the last minute.  It’s an unprecedented move for the Fed, who will take over 79.9% of AIG’s equity. The move was made to avert a wholesale global financial meltdown.

Meanwhile, there have been no updates from AIG United Guaranty Canada, AIG’s Canadian mortgage default insurer.  AIG, the parent, will soon be repositioning much of its capital and getting rid of many of its assets.  Hopefully AIGUG isn’t one of them.

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Last modified: September 17, 2008

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.

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