Remember when the Fed “persuaded” Bear Stearns to sell itself to JPMorgan Chase for $2/share, only to eventually have the price go up to something like $10/share after a good dose of investor outrage?
Been following the AIG saga the last few days? One of the developments was when the Fed pushed the same JPMorgan and others to make a bridge loan to AIG to meet capital needs brought on by its exposure to toxic mortgage paper. That fell through. Interesting, though.
Well now, it seems that the Fed has decided to just cut out the middle man and keep the goodies to itself. They are going to fund an $85 billion loan to AIG–in return for 80% of the company. A company with reported total assests of slightly over $1 trillion dollars.
Ya think they got ’emselves a good deal, there?