| StreetInsider.com - Insiders' Edge |  | AIG - Fool Me Once, Shame On You! Fool Me Twice Shame On Me! |  | With threats of worldwide financial armageddon, AIG (NYSE: AIG) has managed to fleece the U.S. taxpayer - AGAIN! Today, the Federal Reserve and U.S. Treasury announced a plan to restructure the original $85 billion bailout plan with a new $152.5 bailout plan, 80% above the original amount. Not only did AIG get more money, the interest rate on the credit facility was reduced and the time to payback the money was increased. Also, U.S. taxpayers, which currently owns 79.9%, received no new equity ownership.
As part of the new plan, the Treasury will purchase $40 billion of newly issued AIG preferred shares under the TARP, reduce the credit facility from $85 billion to $65 billion and reduce the interest rate on the facility to three-month Libor plus 300 basis points from the current rate of three-month Libor plus 850 basis points, and the fee on undrawn funds will be reduced to 75 basis points from the current rate of 850 basis points. The Federal Reserve also established two new lending facilities relating to AIG: 1. The New York Fed will lend up to $22.5 billion to a newly formed limited liability company (LLC) to fund the LLC's purchase of residential mortgage-backed securities from AIG's U.S. securities lending collateral portfolio. 2. The New York Fed will lend up to $30 billion to a newly formed LLC to fund the LLC's purchase of multi-sector collateralized debt obligations (CDOs) on which AIG Financial Products has written credit default swap (CDS) contracts.
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| Pro Trade of the Day - LodgeNet (LNET) In a 13D filing on LodgeNet Interactive (Nasdaq: LNET ), billionaire Mark Cuban discloses a 9.9% (2,239,400 shares). Cuban paid $1,944,091 for the shares. Cuban bought 1,869,400 shares on 10/30 in the open market at $0.8482 and 370,000 shares on 10/31 at $0.9688. Mr. Cuban may engage in communications from time to time with one or more stockholders, officers or directors. More 13Ds ($): http://www.streetinsider.com/13Ds | | 
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