Fed bails out AIG with $85 billion loan
? Just days after the collapse of Lehman Brothers, the federal government has stepped in to bail out AIG.
The Fed will provide up to $85 billion in a two-year loan to rescue the nation?s largest insurer. The move will help prevent a massive collapse on Wall Street.
The company was on the brink of failure after its stock dropped more than 90 percent this year. Its stock also dropped after its credit rating was downgraded by Moody?s and Standard and Poor?s.
AIG?s Financial Products Division is located in Wilton. Expert say the market turmoil will affect residents in southwestern Connecticut as many work in the New York City financial services sector.
Experts:Wall St. woes could trickle down to CT housing