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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