01:58:34 am on November 10, 2008 |
I just wanted to share this great quote from a http://www.bloomberg.com article.
Now, the two-year, $85 billion loan AIG received on Sept. 16 will be changed to $60 billion that AIG must repay in five years, the person said. AIG will pay interest of 3 percent, rather than the 8.5 percent of the original terms, plus the London interbank offered rate, on amounts the firm borrows.
On amounts AIG doesn’t draw down, it will pay interest of 0.75 percent, rather than the 8.5 percent under the earlier agreement, the person said. AIG investors had complained the rates were so high that they almost guaranteed the company wouldn’t have a chance to recover.
First a world-class resort with taxpayer money, now they can’t even pay interest although they are fairly usurious themselves…