17.9.08

The end of American capitalism as we knew it

This is what I read this morning on FT.com:
“The US Federal Reserve announced that it will lend AIG up to $85bn in emergency funds in return for a government stake of 79.9 per cent and effective control of the company - an extraordinary step meant to stave off a collapse of the giant insurer that plays a crucial role in the global financial system. Under the plan, the existing management of the company will be replaced and new executives will be appointed. It also gives the US government veto power over major decisions at the company.”
I almost decided to go back to bed, convinced I must be dreaming.

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