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Large Insurer AIG Could Seek More Government Help


Major U.S. news sources are reporting that troubled insurer American International Group could seek as much as $30 billion in new funds from the government in an attempt to stay afloat.

Sources told Bloomberg News and the Wall Street Journal that AIG's board met on Sunday to vote on a plan to trade the government equity in overseas units in exchange for more bailout funds.

The transaction would also help AIG pay off some of the $40 billion it has drawn from its government line of credit, and offset the quarterly losses it is expected to announce Monday.

AIG is expected to announced a fourth-quarter loss of as much as $60 billion.

That loss would be the largest corporate loss in history, despite two previous government bailouts totaling $150 billion. The government currently owns an 80 percent stake in AIG, which suffered major losses last year in investments linked to the housing market.

Some information for this report was provided by Bloomberg and Reuters.

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