Fuzzy AIG math

October 28, 2009 in Finance

A bit of out-of-context math from a recent Bloomberg article on AIG:

The Federal Reserve Bank of New York, the regional Fed office with special responsibility for Wall Street, opened an $85 billion credit line for New York-based AIG. That bought it 77.9 percent of AIG and effective control of the insurer.

The government’s commitment to AIG through credit facilities and investments would eventually add up to $182.3 billion.

So, to review: $85B was a  77.9% stake, so $182.3B works out to... 167.1%?

(Obviously, it doesn't work like that.)

But wait, there's more.

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