Details from the FED about AIG Loan

http://www.federalreserve.gov/newsevents/press/other/20080916a.htm

 

Interest on outstanding balance is 3-month Libor + 850 basis points. Damn thats around 11.3%. That will be nice, if the gov't ever sees it.

 

Thank you.

 

Thanks for the link

 

I wonder if its fixed or an adjustable-rate Fed loan. We all know the problems caused by the latter.

 

I don't know if its adjustable, but is there any doubt about it being a liar loan?

 

^ True. So what happens when they have used up the entire $85 billion... Can AIG apply for a second Fed loan at up to 125% equity?

 

Looks like the Japanese stock is closed. Which pre-market ecn or exchange opens it up first? Any info would be much appreciated. I say it opens around the same and swings between 1$-3$ until NY opens.

 

if that is the case- lets sell " aig" on any rallies