S&P: FAQ Looks at What the Fed's Action Could Mean for AIG
NEW YORK, Sept. 25 /PRNewswire/ -- American International Group Inc.(NYSE: AIG; A-/Watch Dev/A-1) entered into an unprecedented agreement with theFederal Reserve on Sept. 16, 2008. This agreement has offered the company an$85 billion secured loan facility from the Federal Reserve Bank of New Yorkand has given the U.S. government effective majority ownership in the firm anda secured interest in most of its assets. It also relieved concerns that AIGmight have to file for bankruptcy because of liquidity concerns, which couldhave caused significant damage to the global financial markets. Yesterday,Standard & Poor's Ratings Services published a Credit FAQ, titled "A Look AtAmerican International Group After The Fed Action," which provides someanswers to the many questions this unusual government step raises about howthe plan would work and what its implications might be.
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), isthe world's foremost provider of financial market intelligence, includingindependent credit ratings, indices, risk evaluation, investment research anddata. With approximately 8,500 employees, including wholly owned affiliates,located in 23 countries and markets, Standard & Poor's is an essential part ofthe world's financial infrastructure and has played a leading role for morethan 140 years in providing investors with the independent benchmarks theyneed to feel more confident about their investment and financial decisions.For more information, visit http://www.standardandpoors.com.
SOURCE Standard & Poor's
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