Sept. 16 (Bloomberg) -- American International Group Inc. avoided the worst financial collapse in history by accepting a rescue that provides an $85 billion loan from the federal government in return for a majority stake.I feel bad for Mr. Greenberg who built the company. But I don't feel bad for the other equity holders that is what equity risk. Just like Bear and Lehman profits had becoming from a highly leveraged strategy with total disregard for risk. The shareholders benefitted and then they lost. That is how high leverage works.
Tuesday, September 16, 2008
The Fed snatches AIG at last moment