Business

AIG offered fresh financial package

WASHINGTON: The U.S. government on Monday provided new financial assistance to troubled insurance giant American International Group, including pouring $40 billion into the company in return for partial ownership.

The action was announced jointly by the Federal Reserve and the Treasury Department. All told, the moves boost aid to the company to around $150 billion.

The $40 billion infusion comes from the recently enacted $700 billion financial bailout package.

As part of the new arrangement, the Federal Reserve is reducing a $85 billion loan it had made available to AIG to $60 billion.

The Fed also is replacing a separate $37.8 billion loan to the insurance company with a $52 billion aid package. — AP

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