Originally Posted by
TransMach
Quote
On the other hand, while AIG pays back the bridge loan at about 9% interest (I don't pay that much on anything) there's a profit for the FED and if AIG becomes profitable and well healed, the FED can sell it's majority shares.
It it works it's good. If it doesn't, is more good money poured down the hoss hole after bad.
TransMach
The AIG facility has a 24-month term. Interest will accrue on the outstanding balance at a rate of three-month Libor plus 850 basis points. AIG will be permitted to draw up to $85 billion under the facility.
I'm sure AIG will be doing everything they can to pay back this loan sooner rather than later.