HEADLINE: AIG reduces government borrowings by $25 billion REALITY: Not Quite

NEW YORK (AP) -- American International Group Inc. on Tuesday slashed the amount of money it owes the government by $25 billion, completing a move of two subsidiaries into special holding units ahead of their planned spinoff or sale.

EXTRACT CONTINUES LATER...

The government is receiving preferred equity stakes in the two life insurance companies worth $25 billion in exchange for a reduction in the amount of money AIG owes the government.

My comment

Preferred stock is not the same as $25 billion in cash.

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