Saturday, October 4, 2008

A.I.G. Uses $61 Billion of Fed Loan

The American International Group said on Friday that it had already drawn down $61 billion of the $85 billion emergency bridge loan it received from the Federal Reserve two weeks ago, an announcement that startled credit ratings agencies.

The emergency loan was supposed to buy the company time to sell its troubled assets in an orderly manner. But the sell-off has not yet begun, and now the insurer faces the additional pressure of trying to sell the businesses at a time when potential buyers are having trouble borrowing money.

http://www.nytimes.com/2008/10/04/business/04insure.html?_r=2&ref=business&oref=slogin&oref=slogin

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