Tuesday, September 16, 2008

--Breaking- Fed Reconsidering Stance on AIG Assist

UPDATE II: Fed does it.

Just crossed on Bloomberg.
I'll be back with a link

The Federal Reserve is considering extending a ``loan package'' to American International Group Inc., the insurer facing a cash shortage, according to a person familiar with the negotiations.

The stance by federal regulators is a reversal from a position they held as late as last night, and people with knowledge of the talks are ``cautiously optimistic,'' said the person, who declined to be identified because negotiations are confidential.

The person gave no timetable for reaching an agreement or estimate on how much money New York-based AIG would need. New York Fed spokesman Andrew Williams declined to comment and AIG spokesman Nicholas Ashooh didn't immediately return a call seeking comment. Treasury spokeswoman Jennifer Zuccarelli had no immediate comment...MORE