It’s not exactly clear from the headlines though it looks as though AIG has hit up the Fed for more aid. Maiden Lane III, a vehicle set up by the NY Fed purchased $16 nln more in CDOs from AIG while a number of credit default swaps were terminated. At first blush, it looks like another trip to the Federal trough for the struggling insurer. Not good news for the dollar.
UPDATE: Here is the Journal’s take.
