This topic focuses on the U.S. financial markets. We periodically cover international markets.
AIG
FED Takes Equity: AIG Does Not Have to Repay $25 Billion
AIG’s new CEO, Robert Benmosche stated yesterday that AIG would repay the money it borrowed from tax payers. The news sent AIG stock up as high as 31%. That sounds like a good idea: Paying back tax payers. Wall Street cheered on the news as if they never expected this to happen? The only problem is AIG has no cash, and thus it is forced to liquidate assets and downsize the company to repay the $182 Billion in various loans from tax payers.