Replies to post #23745 on Fiends In Stocks

[starboy]

$85 Billion dollar loan from Fed for 80% ownership in AIG.

Just on CNBC 4:34 P.M. PDT on the Larry Kudlow show.

AIG may get $85-90 bln bridge loan in govt-brokered deal: CNBC September 16, 2008 7:24 PM ET

All Reuters news(Reuters) - The Federal Reserve is negotiating a $85-90 billion secured bridge loan for American International Group Inc. , according to a report on CNBC.

Shareholders would be severely diluted by the bailout that involves the bridge loan. The government would receive AIG warrants for most of its equity in the bailout being negotiated. CNBC said the deal would give AIG incentive to sell its assets quickly to help pay off the bridge loan.

Federal Reserve Chairman Ben Bernanke, U.S. Treasury Secretary Henry Paulson and others are involved in the talks, CNBC said, adding that the bailout plan being negotiated "isn't a conservatorship."

Copyright 2008 Reuters