Chicago mayor criticizes business bailout

September 18, 2008 5:48:14 AM PDT
Chicago Mayor Richard Daley is not happy about the Federal Reserve Bank's decision to provide an $85 million bailout of insurance giant American International Group. Daley said Wednesday the money would be better spent on education.

Daley said he feels sorry for the people of the United States. He said the nation doesn't have enough money for education, but it has enough money to bail fix every problem on Wall Street.

The bailout of AIG is the second time this month the feds put taxpayer money on the hook to rescue a private financial company. Officials say the failure of AIG would further disrupt markets and threaten the already fragile economy.

AIG said it will repay the money in full with proceeds from the sales of some of its assets.