Capping an extraordinary day in financial markets, U.S. authorities pieced together an emergency $85 billion rescue of insurance company American International Group Inc (AIG.N) to stave off a bankruptcy that could have thrown world markets into deeper turmoil.
AIG''s rescue calls for the U.S. Federal Reserve to lend up to $85 billion to AIG for two years in exchange for a 79.9 percent equity stake. It comes just two days after U.S. authorities refused to bail out investment bank Lehman Brothers Holdings Inc (LEH.N), forcing it into bankruptcy court despite pleas from Wall Street''s chiefs.
AIG will pay interest at a steep 8.5 percentage points above the three-month London Interbank Offered Rate, making the current rate equal to about 11.4 percent. That gives AIG a big incentive to embark on a massive asset sale program to pay back the loan quickly.
"Thank God," exclaimed Daniel Fuss, an influential bond manager who oversees more than $100 billion at Loomis, Sayles & Co in Boston. "AIG is interwoven with so many people and touches many companies around the world. This is a huge relief to many parts of the financial markets."
Around the time the AIG deal was announced, British bank Barclays Plc (BARC.L) gave Wall Street another boost: It agreed to buy several parts of Lehman, the Wall Street investment bank that went bankrupt on Monday, for $1.75 billion.
Majlisi Namoyandagon ratifies supplementary agreement between the Tajik GoT, CNPC and Total
Russia to create digital profiles of migrant workers
Torture of Moscow terror suspects recalls handling of St. Petersburg subway bombing case, rights activist say
Five killed, one injured in Ayni traffic accident
Thousands of teachers in Tajikistan forced to migrate because of low salaries
AKDN employees participate in tree planting ceremony in Khatlon province
Tajikistan decreases the foreign manpower quota for this year
The risk of border conflicts over resources is growing in Central Asia, says CSTO secretary-general
A citizen of Tajikistan accused of justifying a Crocus City Hall terror attack
All relatives of Faridoun Shamsiddin in Tajikistan taken away and his sister deported from Russia
All news
Авторизуйтесь, пожалуйста