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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (44506)	9/16/2008 7:04:16 PM
From: Eric	Read Replies (1) \| Respond to of 57684

Well Real Estate is all about the 3 "L's". My German visitors and myself had fun visiting the rock. Just heard that the Fed will bail out AIG.. not completely though.

To: Lizzie Tudor who wrote (44506)	9/16/2008 8:46:31 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 57684

9:29 AIG American Intl: Fed to give AIG $85 bln loan and take 80% stake - NY Times (3.75 -1.01) -Update- The NY Times reports, In an extraordinary turn, the Federal Reserve agreed Tuesday night to take a nearly 80% stake in the troubled giant insurance company, the American International Group, in exchange for an $85 billion loan. The Federal Reserve and Goldman Sachs and JPMorgan Chase had been trying to arrange a $75 bln loan for the co to stave off the financial crisis caused by complex debt securities and credit default swaps. The Federal Reserve stepped in after it became clear Tuesday afternoon that the banking consortium would not be able to complete the deal. Without the help, AIG was expected to be forced to file for bankruptcy protection. The need for the loans became necessary after the major credit ratings agencies downgraded A.I.G. late Monday, a move that likely to have forced the co to turn over billions of dollars in collateral to its derivatives trading partners worsening its financial health. Until this week, it would have been unthinkable for the Federal Reserve to bail out an insurance company, and A.I.G.'s request for help from the Fed of just a few days ago was rebuffed. But with the prospect of a giant bankruptcy looming — one with unpredictable consequences for the world financial system — the Fed abandoned precedent and agreed to let the money flow.