The Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company after it lost billions in the risky business of insuring against bond defaults. But the move has failed to reassure investors.
Stocks tumble after government bailout of AIG
NEW YORK - September 17, 2008 - The market's losses are nearly on pace with those seen in
Monday's nosedive and investors are seeking the safety of hard
assets and government debt. Gold, oil and short-term Treasurys are
soaring.
