Fed's $3.6 Billion Planned Cut in AIG's Credit Signals Confidence

More

Might AIG survive after all? The Federal Reserve appears to believe that the troubled insurer is slowly regaining its strength. The central bank plans to cut its credit line with the firm by $3.6 billion. That might sound bad, but it's actually a sign of confidence on the part of the Fed. Bloomberg reports:

"This means there's little anticipation AIG will need the credit," said Clark Troy, a senior analyst based in Chapel Hill, North Carolina, for Aite Group, a research firm. "It's a step in the right direction in terms of making AIG less dependent on federal aid."

Let's hope, for taxpayers' sake, that AIG does fully recover. If it does, it may eventually pay back the $182 billion bailout.

Read the full story at Bloomberg.

Jump to comments
Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.
Get Today's Top Stories in Your Inbox (preview)

What Is a City?

Cities are like nothing else on Earth.


Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

CrossFit Versus Yoga: Choose a Side

How a workout becomes a social identity

Video

Is Technology Making Us Better Storytellers?

The minds behind House of Cards and The Moth weigh in.

Video

A Short Film That Skewers Hollywood

A studio executive concocts an animated blockbuster. Who cares about the story?

Video

In Online Dating, Everyone's a Little Bit Racist

The co-founder of OKCupid shares findings from his analysis of millions of users' data.

Video

What Is a Sandwich?

We're overthinking sandwiches, so you don't have to.

Video

Let's Talk About Not Smoking

Why does smoking maintain its allure? James Hamblin seeks the wisdom of a cool person.

Writers

Up
Down

More in Business

Just In