Reports: Fed To Take 80% Stake In AIG For $85 Billion Bridge Loan

Wowsa! Tonight several news sources report that the fed will be taking an 80% stake in AIG in exchange for an $85 Billion dollar bridge loan. Apparently, the insurance giant/conglomerate was deemed too big to fail, unlike Lehman Brother just yesterday. Efforts by Goldman Sachs and JP Morgan apparently failed to find enough interest to do it privately.

Still, how much burden will the taxpayer have to bear this year? Since when does the fed take 80% stakes in Colossal companies? You wonder how the fed may have acted if this wasn't an election year? You frankly wonder how much risk will be nationalized? It really makes you wonder about our capitalist system in general and if the current model is a complete failure? Would it have all been different if we had a more pro-regulation president for the past 8 years? Would it have happened if Clinton and Gramm hadn't repealed The Glass Steagall act in 99'? Just talking out loud here as there is so much to digest and to contemplate. Anyway, here is the news:
U.S. Plans Rescue of AIG to Halt Crisis; Central Banks Inject Cash as Credit Dries Up (WSJ)


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