Fed loans to banks, brokers, AIG totals $410 bln

Commercial banks, investment banks and American International Group borrowed a record $410 billion from the Federal Reserve as of Wednesday, the Fed reported Thursday. AIG borrowed $61.2 billion, the investment banks and broker-dealers borrowed $146.6 billion, and commercial banks borrowed $49.5 billion, the Fed said. In addition, banks have tapped $152.1 billion to buy asset-backed commercial paper from money market mutual funds.

AIG Disaster

Can you believe that AIG(American International Group), one of the countries largest providers of auto, life, heath, and term life insurance is now 80% owned by the US Taxpayers? At ConectUS Insurance Services we were always impressed with the quality of the AIG insurance products. I hope the fact that the US Government is providing $80 Billion in bridge loans will not affect the the service of the AIG. Is this the end of the collapsed companies for awhile? Will the stock market continue to decline as other companies melt down? Was AIG insuring losses sustained by Countrywide?

Should we look to Genworth to provide our term life insurance products now?