Excerpt from: Forex News
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| March 02, 2009 | | Risk aversion jumps in currency trading | After last week's announcement that the US government would be increasing its stake in Citi, the rumors were rampant that more financial institutions would likely follow. And this morning most people have awakened to find that's true with regard to AIG.
Government revisits AIG bailout plan
After AIG posted a 2008 Quarter 4 loss of more than $60 billion, the US government has mounted its white horse and is coming in for the rescue. The idea is to restructure the AIG bailout plan, allowing the government to increase its stake in the ailing financial giant.
However, the government still maintains that ownership of private financial institutions is not a goal, so it is hoping that private funding can be found. AIG is also expected to go through a major restructure, selling off a number of its "non-core" businesses.
As one might expect, this latest development has sent risk aversion soaring in currency trading. Which means another shot of strength for the US dollar in forex trading.
| Topic Tags: AIG, bailout, Citi, currency trading, dollar forex trading, forex trading, rescue AIG, US government | |
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