Media Digest 9/17/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, the federal government bailed out AIG (AIG) The Fed will loan the insurance company $85 billion for two years in exchange for a 79.9% stake.

Reuters says that Barclays (BCS) bought the US unit of Lehman (LEH).

Reuters reports that the Fed held interest rates steady.

Reuters says that Morgan Stanley (MS) is weighing whether it should stay independent.

Reuters reports that investors see a golden era of distressed securities.

Reuters says that the Fed paid back JP Morgan (JPM) $87 billion for money it used to facilitate trades with bankrupt Lehman (LEH).

The Wall Street Journal reports that Sandisk (SNDK) made an offer from Samsung.

The Wall Street Journal reports that oil speculators who used borrowed money are being forced out of the market.

The Wall Street Journal reports that Toyota (TM) believes it will post a profit in the US.

The Wall Street Journal says that inflation fell due to dropping price of oil.

The Wall Street Journal reports that Best Buy’s (BBY) profits fell.

The Wall Street Journal reports that the Lehman failure is leading banks to sell-off commercial property assets.

The Wall Street Journal reports that lending among banks is frozen.

The Wall Street Journal reports that stocks in Russia fell 11%.

The Wall Street Journal reports that some hedge funds were left in a bind by the collapse of Lehman.

The Wall Street Journal reports that Dell (DELL) says demand for its products is soft.

The Wall Street Journal writes that GM (GM) has cut its outlook for China sales.

The Wall Street Journal reports that GM’s new electric car and cost cutting will be the basis of much of the company’s future.

The Wall Street Journal reports that Amgen’s (AMGN) bone drug cleared major testing hurdles.

The Wall Street Journal reports that Abbott’s (ABT) drug-coated stent is selling better than the company expected.

The Wall Street Journal reports that McClatchy (MNI) cut 10% of its work force and that the Newark Star-Ledger may fold.

The New York Times says that some members of Congress and experts believe that the government should create a new entity to buy Wall St.’s bad loans.

The New York Times reports that gas prices are rising slowly after Hurricane Ike hit the Texas coast.

The New York Times reports that the heads of GM (GM) and Ford (F) went to Washington to push their case for loan guarantees.

The New York Times reports that Porsche took a controlling interest in VW.

The FT reports that oil fell to $90.

The FT reports that Google (GOOG) is having trouble making inroads in Asia and Russia.

Bloomberg reports that the Fed’s rescue of AIG (AIG) and rejection of helping Lehman (LEH) puts it in the business of deciding which firms to help.

Douglas A. McIntyre