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09-10-2008, 10:49 PM

AIG May Tap $37.8 Billion From Fed, on Top of $85 Billion Loan

By Hugh Son and Erik Holm

Oct. 9 (Bloomberg) -- American International Group Inc., the insurer taken over by the government, may access $37.8 billion from the Federal Reserve Bank of New York, in addition to the $85 billion loan that helped it stave off bankruptcy.

AIG can swap as much as $37.8 billion of its ``investment- grade, fixed-income securities'' for cash to ``replenish liquidity'' at the New York-based insurer, the Fed said late yesterday in a statement. AIG spokesman Nicholas Ashooh said the assets were held mainly in U.S. life insurance subsidiaries and declined to say how much of the new program has been used.

``You're in for a dime, you're in for a dollar on this one,'' said David Havens, a credit analyst at UBS AG.

Continued here:

Bloomberg.com: Worldwide

You're in for a dime, you're in for a dollar on this one - you certainly are!

09-10-2008, 10:49 PM	#785 (permalink)
bkkandrew Guest Posts: n/a	AIG Holds Out the Begging Bowl Again... AIG May Tap $37.8 Billion From Fed, on Top of $85 Billion Loan By Hugh Son and Erik Holm Oct. 9 (Bloomberg) -- American International Group Inc., the insurer taken over by the government, may access $37.8 billion from the Federal Reserve Bank of New York, in addition to the $85 billion loan that helped it stave off bankruptcy. AIG can swap as much as $37.8 billion of its ``investment- grade, fixed-income securities'' for cash to ``replenish liquidity'' at the New York-based insurer, the Fed said late yesterday in a statement. AIG spokesman Nicholas Ashooh said the assets were held mainly in U.S. life insurance subsidiaries and declined to say how much of the new program has been used. ``You're in for a dime, you're in for a dollar on this one,'' said David Havens, a credit analyst at UBS AG. Continued here: Bloomberg.com: Worldwide You're in for a dime, you're in for a dollar on this one - you certainly are!