U.S. Pressed to Add Billions to Bailouts

The government faced mounting pressure on Monday to put billions more in some of the nation’s biggest banks, two of the biggest automakers and the biggest insurance company, despite the billions it has already committed to rescuing them.

The government’s boldest rescue to date, its $150 billion commitment for the insurance giant American International Group, is foundering. A.I.G. indicated on Monday it was now negotiating for tens of billions of dollars in additional assistance as losses have mounted.

Separately, the Obama administration confirmed it was in discussions to aid Citigroup, the recipient of $45 billion so far, that could raise the government’s stake in the banking company to as much as 40 percent.

The Treasury Department named a special adviser to work with General Motors and Chrysler, two of Detroit’s biggest automakers, which are seeking $22 billion on top of the $17 billion already granted to them.

Read it all.

Posted in * Economics, Politics, Economy, Office of the President, Politics in General, President Barack Obama, The 2009 Obama Administration Bank Bailout Plan, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The National Deficit, The Possibility of a Bailout for the U.S. Auto Industry, The September 2008 Proposed Henry Paulson 700 Billion Bailout Package, The U.S. Government, Treasury Secretary Timothy Geithner

2 comments on “U.S. Pressed to Add Billions to Bailouts

  1. Harvey says:

    I think it is time to let some of the failing banks fail and let the stronger ones move on. I can’t see the US Government trying to throw billions out to help and then hearing the pigs squealing for more – particularly those that were formed during this great bail out time of the past few years.

  2. Cennydd says:

    Somehow, the idea of pigs squealing at the teat comes to mind; there are only just so many teats to go around! There are some banks……and corporations……which NEED to fail.