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Article: Why US keeps backstopping a flattened AIG.(American International Group)(national)
- Article from:
- The Christian Science Monitor
- Article date:
- March 3, 2009
- Author:
CopyrightCOPYRIGHT 2009 The Christian Science Publishing Society. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Ron Scherer Staff writer
After Lehman Brothers failed in September, the financial markets froze up, causing interest rates to jump despite vigorous efforts by central bankers worldwide to keep credit flowing. Would the same thing happen - or perhaps something worse - if the US let troubled insurance giant AIG (American International Group) fail?
Yes, is the reply from the US Treasury and the Federal Reserve, which added another $30 billion commitment to AIG on Monday. This increases taxpayers' pledges to the company to $180 billion - about the same amount to be spent this year under the just-passed economic stimulus package. It is the fourth time ...