It’s Friday, so let’s post some cats (done) and do some math. AIG shares are up becaues they paid back $2.3 billion of their federal loan.
O RLY.
A chronology:
Fed offers to loan AIG:
- $85bn on 2-year terms
- $37.8 bn they begged for later
- $20.9 bn at the CPFF
…so, $143.7 billion dollars total.
They’ve drawn out
- $61 bn from the initial 2 year loan
- $19.9 bn from the secondary loan
…$80.9 bn total. Almost the full amount of the first loan. BUT THEY PAID IT DOWN BY 2.3 BILLION! WE SHOULD BE ELATED!
Oh, wait. Where’d they find $2.3 billion?
Although [AIG Spokesman Joseph] Norton would not provide details of the amounts borrowed under the new commercial-paper-funding facility, he did say the decrease in the $85 billion facility is “due primarily to AIG’s access” to the [CPFF] program.
Fail.
Wayne // Nov 10, 2008 at 3:36 am
I wish someone would give me $85bil, and then “cut it” to $60bil a few weeks later:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aAlWe7pNn734&refer=home
The U.S. will cut the original $85 billion loan that saved the New York-based insurer in September to $60 billion, buy $40 billion of preferred shares, and purchase $52.5 billion of mortgage securities owned or backed by AIG, according to a person familiar with the matter. The funds will help AIG retire part of its credit-default swap portfolio and bolster its securities lending operations, said the person, who declined to be identified because the plan hasn’t been officially announced.