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US govt saves AIG, Lehman 'booty' goes for a song

China Daily | Updated: 2008-09-18 07:54

WASHINGTON: The global market yesterday gave a mixed response to the US government's move to rescue American International Group Inc (AIG) by injecting $85 billion of taxpayers' money.

Under the deal struck on Tuesday, the US government gets 79.9 percent stake in AIG, one of the world's largest insurers, and will have the right to remove senior management.

But while two US financial giants were thrown a lifeline this week, a third, Lehman Brothers, faces an untimely demise. A bank that a year ago had a market capitalization of more than $33 billion has been forced to unload its once-prized businesses for what passes as pocket change on Wall Street.

US govt saves AIG, Lehman 'booty' goes for a song

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