Media reports are casting the government's decision to effectively rescue troubled insurance giant AIG with an $85 billion loan in exchange for a close-to-80% stake in the company as a surprise move, an indication of the continuing peril and uncertainty in the financial sector. The Los Angeles Times calls the move "the largest single financial intervention in the nation's history and a measure of the depths of America's financial crisis." On its front page, the New York Times calls the government's move "the most radical intervention in private business in the central bank's history," a step taken "to avert a possible financial crisis worldwide."
The Washington Post calls the Fed's move "a stunning turnaround," while USA Today says it was a "stunning decision," coming "just days after the Treasury and Fed refused to bail out investment bank Lehman Bros., which filed Monday for the lar
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