Reading Time: < 1 minute
At least that’s what Fed chairman Bernenke and Treasury secretary Paulson think, and the congress and president agree with them. But how about the shareholders and we the tax payers? The AIG shareholders are almost wiped out (slightly better than Fannie and Freddie), and the price tag is $85 billion for now.
So summary, the price tag of recent big financial firms fallout.
Bear Stearns: $2 goes to $10 (stock); Fed puts up $29 billon loan
Fannie/Freddie: stock becomes penny stock (under $1) because of the goverment new prefered shares and 79.9% common stock warrant; Treasury pledges up to $200 billion for now.
Lehman brothers: stock goes to zero, company went to bankrupcy
Merrill: bought out by BoA (1 share MER = 0.8595 share BAC)