The Fed Extends Helping Hand to AIG (My Version)

A few days ago I tracked a story by Madlen Read regarding the Federal Reserve coming to the aid of American Insurance Group with an $85 billion loan. While Read updated her piece regularly throughout the morning, she did not make the necessary updates in the evening, once the work day was over.

Now that a few days have passed since the DOW went down 450 points (but rebounded again), I will write my version of Read's story. Well, just the first few paragraphs. Here goes:

Fearing a collapse on Wall Street, the Federal Reserve has loaned American Insurance Group $85 billion on a day in which the DOW Jones fell 450 points. In exchange for help over the next two years, the Federal Reserve will stake a claim to 80 percent of the company.

The government will also begin selling bonds in order to ease some of the panic on the markets. This comes amidst recent warnings by the SEC against short-selling.

Amidst the lack of confidence on Wall Street, more investors have backed away from stock and have looked to more secure assets. This has led to a rapid increase in value in gold and oil.