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... ederal Reserve authorized the New York Reserve Bank to provide an emergency loan of $85 billion to AIG, which is on the verge of bankruptcy, for a period of two years at an interest rate of three months to the London Interbank Offered Rate (LIBOR) plus 850 basis points.
In return, the Federal Reserve will receive 79.9% of AIG's stock options and has the right to veto AIG's right to issue dividends to common shareholders and preferred shareholders. This basically means that the US gover ...
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