Fed Readies A.I.G. Loan of $85 Billion for an 80% Stake

Re:Fed Readies A.I.G. Loan of $85 Billion for an 80% Stake by fusionman on Tuesday September 16, 2008 @10:05PM (#306571)

This is really starting to bother me. These giant financial institutions make tons of money by taking RISKS. When things go well they make lots of money, people get big bonuses and the rest of society gets to read about "Talented Bankers and Their $50mil Bonuses" on the latest cover of Forbes. When things don't go well, the government gives them a loan to bail them out or else our economy will collapse. What choice do we have?

I don't know the answer here, but I don't like this.

At least in Venture Capital and startups, we understand that risk is risky, and we take the good with the bad.

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Re:Fed Readies A.I.G. Loan of $85 Billion for an 80% Stake by tptacek on Tuesday September 16, 2008 @10:16PM (#306580)

Doesn't this deal basically amount to the orderly liquidation of AIG?

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Re:Fed Readies A.I.G. Loan of $85 Billion for an 80% Stake by fusionman on Wednesday September 17, 2008 @12:53PM (#307201)

It would appear so. The government isn't an investment fund, so I am curious as to what their exit strategy is for this "investment". I'm sure they'll come out OK. I wonder where their profit (assuming there is a profit) will actually go.

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Re:Fed Readies A.I.G. Loan of $85 Billion for an 80% Stake by andrewf on Wednesday September 17, 2008 @01:53AM (#306725)

Risks are borne by owners, not employees.

AIG shares are in the crapper and now the government is taking 80%. The owners are being punished.

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