AIG to get additional 30 billion dollars aid from U.S. government
American International Group Inc. (AIG) will receive up to an additional 30 billion U.S. dollars in federal assistance as part of the latest revamp of its government bailout, Xinhua reported on Sunday, referring to the Wall Street Journal.
The new funding is intended to support AIG as it absorbs 60 billion dollars in quarterly losses and operational and competitive upheaval.
Under the plan, the insurer will repay much of the 40 billion dollars 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 U.S. government, will report the largest loss in U.S. corporate history.
The company has received 150 billions of government aid so far. That included a 60-billion-dollar credit line from the Federal Reserve, a 40 billion-dollar capital investment and 50-billion- dollar to wind down liabilities tied to mortgage-backed securities the insurer owned or backed through swaps.
The U.S. Senate's banking committee has scheduled a hearing for March 5 to discuss AIG's bailout and the government involvement.