The Fed Trims AIG's Credit Line
A sign of recovery? No, more song and dance. Why the fuck do they have $24 billion of outstanding debt to the Fed in the first place? Where I come from if you are bankrupt, the last thing you get is a credit card, especially one in the tens of billions. Pffft.
The Federal Reserve plans to reduce AIG's (AIG.N) credit line by about $3.6 billion, in a sign of growing confidence that the government bailed-out insurer can emerge out of taxpayer support, Bloomberg said, citing a person with knowledge of the proposal.
As per the terms of American International Group's (AIG) 2008 government rescue, the amount of credit available to the insurer would reduce as it repaid borrowed amounts, the agency said.
The Fed gave an exemption in 2009 to AIG on $3.6 billion in proceeds from asset sales and has decided this year that the relief may no longer be necessary, the person told the agency.
Good. Now let's see them grow a pair and cut the credit completely.