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as i understand it they get the interest, the principal AND the equity.no one has ever made such a deal in history if that is truly the deal.
Equity will be pretty much nada soon. They will have to sell of assets to pay back the loan. W/o assets, no business. In conclusion, this is a slow systematic liquidation.
again...it's not yet a loan until aig need it....if aig never used it....after two years...aig shareholders are homefree....