AIG to get additional $30 bn aid from US government

March 2nd, 2009 - 9:10 am ICT by IANS  

New York, March 2 (Xinhua) US insurance company American International Group (AIG) will receive an additional $30 billion in federal assistance as part of the latest revamp of its bailout by the US government, the Wall Street Journal reported Sunday.The new funding is intended to support AIG as it absorbs $60 billion in quarterly losses and operational and competitive upheaval.

Under the plan, the insurer will repay much of the $40 billion it owes the Federal Reserve loan with equity stakes in two AIG units overseas.

AIG, the insurance giant that is 80 percent owned by the US government, will report the largest loss in US corporate history.

The company has received $150 billion of government aid so far. That included a $60-billion credit line from the Federal Reserve, a $40 billion capital investment and $50-billion to wind down liabilities tied to mortgage-backed securities the insurer owned or backed through swaps.

The US Senate’s banking committee has scheduled a hearing for March 5 to discuss AIG’s bailout and the government involvement.

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