$85 Billion Bailout!!!!!!!

by **J The Kidd** Wed Sep 17, 2008 5:55 pm

Wall Street plunged again Wednesday, with anxieties about the
financial system still running high after the government bailed out
insurer American International Group Inc. The Dow Jones industrial
average dropped about 300 points.

The Federal Reserve is giving a two-year, $85 billion loan to AIG in
exchange for a nearly 80 percent stake in the company after it lost
billions in the risky business of insuring against bond defaults. Wall
Street had feared that the conglomerate, which has its tentacles in
various financial services industries around the world, would follow
the investment bank Lehman Brothers Holdings Inc. into bankruptcy. The
ramifications of the world's largest insurer going under likely would
have far surpassed the demise of Lehman.

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