Once you start bailing out business how do you stop? Once they are used to cheap money how do you teach them to hustle? AIG is all over the news again. It is getting another bail out. From Bloomberg….
The U.S. Treasury will buy $40 billion in American International Group Inc. preferred shares, and the Federal Reserve will open two new emergency loan units to finance the company’s securities, the government said today.
The new terms of the government’s assistance are less costly than the Fed’s first loan to AIG on Sept. 16, a statement released in Washington said. The New York Fed gave the original loan to prevent widespread default against AIG creditors in the same week that Lehman Brothers Holdings Inc. collapsed.