What happens to Stowe if its parent company, insurance and finance giant AIG, goes belly-up before the first snow?
post #1 of 31
9/12/08 at 12:46pm
I hoppe they don't.
Government intervention with lending rates and the market has a lot to do with why we are in this mess.
|The loan will have a 24-month term and is expected to be repaid by the sale of AIG assets. The federal government will have veto power over the payment of dividends to shareholders.
The AIG board approved the rescue plan last night.
The bailout came as AIG, desperately trying to raise capital in recent days, was close to filing for bankruptcy. Yesterday, Fed officials, who had previously rebuffed AIG's requests for a government loan, worked with lenders as they tried unsuccessfully to come up with a private financing package. Ultimately, the Fed became the last resort.
Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson briefed congressional leaders last evening, including Representative Barney Frank, the Newton Democrat who chairs the House Financial Services Committee, according to Frank's spokesman, Steven Adamske. Frank had no comment last night, Adamske said.
Senator Charles Schumer, a New York Democrat, who was also briefed on the plan, said in a statement, "The administration is approaching an unprecedented step, but unfortunately we are living in unprecedented times. Hearing of these plans, you have to stop to catch your breath. But upon reflection, the alternatives are much worse."