So What Interest Rate Will AIG Be Paying Us

[lligrd]

Seeing as they are a terrible credit risk, shouldn't they be paying at least 18%? What about late payment fees? What is good for the goose should be good for the gander (or in this case the golden goose), don't you think?

[sandnsea]

1. And we should get a Permanent Fund Dividend

Like Alaskans get from their oil.

[lligrd]

4. I'd Love To Ask Palin What She Thinks Of The Idea lol nt

[ForeignSpectator]

20. "In what respect, lligrd?" n/t

[BelgianMadCow]

2. I saw on DU something like 8% was agreed for the 80 billion

which I'd bet is too low to even cover the defaults in that 'portfolio"...

[lligrd]

7. 8% With That Credit Rating? Far Too Low

I'd really like an answer to the reason it is fair for corporations to charge individuals deemed a poor credit risk ridiculous interest rates that the corporations themselves aren't subject to when they are on the verge of bankruptcy. This is a great time to bring up the unfair lending practices that the public has been subject to.

[O.M.B.inOhio]

3. Isn't it funny how Repiglicans like to privatize gain and socialize loss?

[lligrd]

5. Amazing! And What Happened To Personal Responsibility?

I guess corporations are exempt!

[avaistheone1]

30. They should just pick themselves up by their bootstraps.

[Bluebear]

6. It should be an adjustable rate, and an immediate rise to 32% if they miss a payment.

Sauce for the goose.

[lligrd]

8. Yep, And A $2 Million Dollar Late Payment Fee

even if they mailed it on time but it sat in the mail bin till it was late.

[aein]

9. It's Libor (3%) + 8%, which means it's around 11%

[WCGreen]

13. That's what I heard yesterday morning..

[lligrd]

14. So We've Outsourced Our ARM Now? nt

[lligrd]

15. Good, Then Let's Cap All Interest Rates At The Same

Seems only fair to me.

[Trillo]

10. I can't believe nobody's rec'd the thread.

Probably a signal of the lack of interest regarding the people's interest.

[lligrd]

11. TY SimpleTrend

Might just be the time of day I post though.

[dipsydoodle]

12. Can you say

Sweet fuck all ?

[crispini]

16. 11% is fucking high. I have 5.25% on my mortgage.

Seriously, I've been listening to Marketplace, and we the taxpayers could very well come out ahead on this deal. AIG has good assets and we are going to break that bad boy up and sell it off.

[lligrd]

17. Huh. Their Credit Rating Sucked

They were on their way to bankruptcy. You try getting that rate in that condition. Say you just lost your job and your house was worth less than you owed, think you'd still get that rate? Hell no. Why, cause you are a bad risk. These are the same freaking greedy corporations that lobbied for the bankruptcy bill and an end to usury laws. How the heck can you advocate protecting them while allowing them to charge even higher rates to those that they service?

[TomClash]

18. 850 basis points over Libor

Right now that's about 11.5%

[RC]

19. Forget the interest rates, my question is "Why is no one sitting in jail for these massive failers?"

"Why aren't the perpetrators in danger of losing their ill got gains?"

[Thothmes]

21. What felony have they committed

Under ordinary circumstances losing money in a business is not a criminal offense. If it were, hundreds of small business owners each year would be going to the pen. Unfortunately, incompetence and bad judgement are not a chargeable offenses.

[nichomachus]

23. Actually

Corporate officers have a legal obligation -- punishable in criminal court -- to act in the best interests of the corporation and to maximize profit. It's in the law. They can be held criminally liable for not taking prudent action to protect the assets and profits of the stockholders.

In fact, this is one of the reasons corporate officers cannot act in the best interest of the public if it will negatively impact profits. And, it's really something that needs to be changed.

[Thothmes]

26. This is true

but have the stockholders taken any action against AGI or Lehman.

[annabanana]

22. Only 18%. . ..unless there's ONE LATE PAYMENT. .

Then, according to law, we can crank it up as high as we want.. (Who was it that made sure there were no limitations on the rate they can be charged?)

[Jester Messiah]

24. Like Charlie Brown used to say, "I can't stand it."

Corporate America had me bent over their knee for -years- until I was able to get my credit put back together, and now they just get bail-out after bail-out. And they're getting it from MY TAXES! It makes me want to punch a hole in the wall! Where the hell was my bail-out?

[unblock]

25. i heard libor + 8.5%

[patriotvoice]

27. -4.0% APR. Now that they are nationalized...

they have no incentive to actually work; the tax IV has been hooked up, and they can just lay there forever sucking it up.

[Joanne98]

28. 11%

[Stinky The Clown]

29. ~11.5% - which is 8.5% above the London interbank rates

"The government is lending AIG the money at 8.5 percentage points above the three-month London interbank offered rate, or a current rate of about 11.5 percent."

http://www.bloomberg.com/apps/news?pid=20601087&sid=a6QAz6YiyRAI&refer=home