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DAILY TELEGRAPH Lottery winner's estranged mother 'ecstatic' for son - Fri, 10 Feb 2012 06:59:56 GMT
Lottery winner's estranged mother 'ecstatic' for son - Fri, 10 Feb 2012 07:03:08 GMT
FINANCIAL TIMES Eurozone dismisses Greek budget deal - Thu, 09 Feb 2012 18:58:47 GMT
Eurozone dismisses Greek budget deal - Fri, 10 Feb 2012 00:07:16 GMT
BBC NEWS BBC News - Business - Fri, 10 Feb 2012 07:03:03 GMT
BBC News - Business - Fri, 10 Feb 2012 07:35:08 GMT
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AIG saved by $85bn Federal Reserve bailout
In a similar deal to that of Fannie Mae and Freddie Mac last week the US government has agreed to support AIG to the tune of $85bn, with a secured loan, in return for a near 80% stake in the business and a change of management.
Following the announcement of the bailout, which became necessary after AIG share price movements and credit down grading meant that it could have to post $14.5bn in extra collateral, the Asian markets showed signs of recovery. Speculation about an impending rescue of the worlds largest insurance company had earlier soothed US investors.
Had AIG been allowed to go the way of Lehman Brothers then the implications could have been extremely serious as AIG provides banks with insurance against credit defaults, and with the removal of this cover banks would have ben left looking for cash.
The reason for this is that without insurance against their riskier loans the banks would have had to set aside cash against these loans which while covered by insurance they hadn't needed to do.
This could have led to liquidity issues with more banks, a tightening of liquidity and higher interest rates.
So it would appear that some companies are still TOO BIG TO FAIL.
- TMA looking to build bridges
- Woolwich cuts rates
- Brokers may still miss TCF deadline
- Quest cuts cost of HIPS packs
- CLG release shows small annual fall in house prices
- A word of caution on online information from the NLA
- A&L shareholders vote for take over
- LV= cuts its rates
- Inflation jumps to 4.7% - but is worse for the old
- Barclays to raise $1bn to fund acquistion of Lehman assets
- Reasons to be cheerful
- Use your garage to beat the credit crunch?
- IMA calls for a financial stability legislative committee
- Income protection can lessen financial hardship for credit crunch casualties
- Two key appointments at HML
- HBOS and Lloyds may be in merger talks
- Vendors turn to estate agents
- Eight out of ten will meet TCF deadline
- Equity Advice launches ‘deal buster’
- Variable rates now more attractive
- Unemployment up and vacancies down
- IMA Chairman looks at the impact of the credit crunch