http://online.wsj.com/article/SB122156561931242905.html
* SEPTEMBER 16, 2008
U.S. to Take Over AIG in $85 Billion Bailout;
Central Banks Inject Cash as Credit Dries Up
Emergency Loan Effectively Gives Government Control of Insurer;
Historic Move Would Cap 10 Days That Reshaped U.S. Finance
By MATTHEW KARNITSCHNIG, DEBORAH SOLOMON, LIAM PLEVEN and JON E. HILSENRATH
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The U.S. government seized control of American International Group Inc. — one of the world’s biggest insurers — in an $85 billion deal that signaled the intensity of its concerns about the danger a collapse could pose to the financial system.
The step marks a dramatic turnabout for the federal government, which had been strongly resisting overtures from AIG for an emergency loan or some intervention that would prevent the insurer from falling into bankruptcy. Just last weekend, the government essentially pulled the plug on Lehman Brothers Holdings Inc., allowing the big investment bank to go under instead of giving it financial support. This time, the government decided AIG truly was too big to fail.
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Sorry, but the gooferment should NOT be picking winners and losers. Sorry “Lehman Brothers” stockholders and employees, you lose. Fannie and Freddie, you win. Fannie and Freddie CEOs get big golden parachutes; so they win big.
Who’s the biggest losers? Why the American Taxpayers, of course, silly rabbit!
Get ready Ford and GM retirees, you’re screwing is just around the corner!
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Reinke Faces Life 