It seems like the government may float AIG a loan going forward.
The Federal Reserve is considering extending a ``loan package'' to American International Group Inc., the insurer facing a cash shortage, according to a person familiar with the negotiations.
The stance by federal regulators is a reversal from a position they held as late as last night, and people with knowledge of the talks are ``cautiously optimistic,'' said the person, who declined to be identified because negotiations are confidential.
Of course it made Sen. Dodd has demand a bunch of crap from people that are trying to keep the stock market from tanking and throwing AIGs 116,000 employees out of work.
"I'm willing to listen. I'm skeptical ... I want to have them come to me as they're thinking about it, not announce it and expect us to necessarily go along with it."
"I would say to them now, don't announce that without talking with us up here and telling us why that is necessary," he said, referring to U.S. lawmakers.
You know what Senator? Why don't you or one of your staff go to AIG headquarters and find out why this loan is necessary. I'm sure you can get the CEO of AIG on the phone and ask him why his firm needs $70 billion in loans or his company will fail. In fact why the hell aren't you an integral part of this process working shoulder to shoulder with Paulson and New York FED Chairman Timothy Geithner?
Maybe someone will tell Dodd that if AIG goes bankrupt then they might break open the $62 trillion (yeah trillion with a T) market in Credit default swaps that just about every financial firm in the world owns and would then have trouble marking to market. I'm sure Dodd can Google what a CDS is if he isn't already aware of how crucial they are to the banking system. And people wonder why Democrats aren't trusted when it comes to the economy.
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