Financial Meltdown Drama Continues: AIG got $85 Billion bail-out package from US Government.

- U.S. took over AIG in $85 Billion 2 years emergency loan bailout;

- In return, US Government will own 79.9% of AIG, diluting existing shareholders.

- Robert Willumstad, AIG CEO has been asked to step aside by Treasury Secretary Henry Paulson and will be replaced by Edward Liddy, the former head of insurer Allstate Corp.

- US government now is in control of a private insurer giant - a historic event.

- Maurice Greenberg, former Chairman and CEO of AIG and AIG's largest shareholder lost significant amount of wealth due to 90%+ decline in AIG stock price for the past one year. Mr. Greenberg previously offered advisory help to Mr. Willumstad. Read Greenberg's letter to Willumstad.

- Parts of the company will be sold to repay the bailout debt.

- The U.S. government has the right to veto the payment of dividends to common and preferred stockholders.

Source: Wall Street Journal Online, Bloomberg