The title phrase has been used to describe the Treasury Department’s agreement on Monday to give American International Group (AIG) another 30 billion dollars in exchange for more equity in the company. In order to understand the enormity of this blunder you have to review what has happened over the last few months.
September 2008 – The Treasury Department agreed to buy a 79.9% stake in AIG for 85 billion dollars. At that time the stock is worth around $20 per share.
Posted on March 6, 2009 by pnaction