Under this program, the New York Fed has the green light from the Fed to borrow up to $37.8 billion in "investment-grade" (Yeah, right), fixed-income securities from AIG in return for cash collateral. These securities were previously lent by AIG’s insurance company subsidiaries to third parties (And apparently, the third parties don't want them as collateral, anymore).
For those keeping score, this is in ADDITION to the drawdowns to date of $85 billion under the original New York Fed loan facility.
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