Via the NYT: U.S. Is Said to Offer A.I.G. $30 Billion in New Funds
The federal government agreed Sunday night to provide an additional $30 billion in taxpayer money to the American International Group and loosen the terms of its huge loan to the insurer, which is preparing to report a $62 billion loss on Monday, the biggest quarterly loss in history, people involved in the discussions said.The intervention would be the fourth time that the United States has had to step in to help A.I.G., the giant insurer, avert bankruptcy. The government already owns nearly 80 percent of the insurer’s holding company as a result of the earlier interventions, which included a $60 billion loan, a $40 billion purchase of preferred shares and $50 billion to soak up the company’s toxic assets.
Meanwhile, via Reuters: Global stocks hit 6-year low, dollar surges
World stocks fell to nearly six-year lows on Monday and the dollar hit 3-year peaks after a 12.5 billion pound ($17.75 billion) rights issue by HSBC (HSBA.L) and another cash injection to U.S. insurer AIG (AIG.N).Oil fell more than 3 percent while government bonds rose across the board after HSBC, Europe’s biggest bank, launched the rights issue to shore up its balance sheet after it reported a 18 percent fall in adjusted pretax profit for 2008 and cut its dividend.
[...]
The dollar index (.DXY), which measures the currency’s strength against a basket of major currencies, hit its highest level since April 2006. The single currency fell to $1.2562.
[...]
.S. crude oil fell 3.6 percent to $43.15 a barrel.
In regards to HSBC, the NYT reports that they will cut 6,100 jobs.
Also worth noting:
- Via the NYT: Ukraine Teeters as Citizens Blame Banks and Government.
- Via the NYT: Growing Economic Crisis Threatens the Idea of One Europe
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March 2nd, 2009 at 9:43 am
TYPO HAHAHA
March 2nd, 2009 at 9:44 am
econony!
March 2nd, 2009 at 9:57 am
Fixed–thanks.
March 2nd, 2009 at 12:51 pm
I finally understand this AIG thingy: Aig is currently losing $30,000.00 per second … that’s $1,800,000 (One Million, eight hundred Thousand Dollars) per minute … etc. projected back for as many years as they’ve been losing money(Ponzi-like). Barney Franks has been the Chairman of the oversight committee in congress that watches this, all banking and all housing transactions. In 2002, then President Bush, because of compiled rumors in the marketplace, asked Barney Franks for a current report on the condition of AIG and the Banking and Housing committees, Franks assured the new President that all was financially well. Then, during the election, Barney Franks changed his story to fit the Democratic strategy; in other words, Barney Franks lied to the voting public. As I recall, other efforts to see the books were referred to as politically motivated partisan attacks, holding further efforts at bay until now. Money leaves a paper trail, however and, what I’d like to know is, how many branches of that trail lead to Barney and his associates?