Citizen Perks: 80% ownership in AIG
by Bradley, Editor
September 16, 2008
AIG Tower
The Federal Reserve extended an emergency $85 billion funding line to global Insurance company AIG in return for an 80% equity stake in the company, making for a nice symmetry of otherwise frightening numbers. Faced with the prospect of a probable bankruptcy filing without intervention, the Fed went against precedent in its most recent bailout. Without the agreement, the failure of AIG, which holds insurance policies in nearly every area, would have sent unthinkable shockwaves through the world economy. Just when you thought the benefits of American citizenship were limited to tax burdens, peacetime security and voting rights, you are now a certified owner of 4/5 of a global insurance comglomerate…
Yeah and if they did it on Friday they would have only needed $20 Billion. Nice job quick draw!!! On top of it we (the Tax payers) own 80% of a failing business! More reason I don’t want my tax dollars in the hands of anyone in the government. LESS TAXES FOR ALL! Let me handle my own money!
On the elevator I asked a coworker what he thought about owning 80% of AIG. He responded that maybe we might have more say in getting those bad commercials off the air!
Here’s a recent Freakonomics blog FAQ on the recent crisis for those wanting some background information:
http://freakonomics.blogs.nytimes.com/2008/09/18/diamond-and-kashyap-on-the-recent-financial-upheavals/?em