AIG in line for another cash boost
11 April 2012
Insurer American International Group (AIG) could get another $38 billion (£21.94 billion) in government cash under a new investment plan by the Federal Reserve.
It has already received an $85 billion government loan to save it from going under.
Under the new plan the Federal Reserve Bank of New York will take up to $37.8 billion in investment-grade, fixed-income securities from AIG in exchange for cash.
The Fed said this will allow AIG to replenish liquidity used in settling transactions with counterparties.