Fed Loan to AIG
Date:
October 8, 2008
Policy Area:
Financial Sector Policy
Economic Target:
AIG
Action Type:
Loans
Maximum Amount:
$37.80 billion The Federal Reserve took $37.8 billion in investment-grade, fixed-income securities from AIG, in return for cash.
Source:
Notes:
On November 10th, upon the Federal Reserve's creation of two new limited liability companies formed to assist AIG with its bad assets, the Fed announced that these security-collateralized loans would be repaid by AIG and terminated.
Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.