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Insurer AIG Gets $30 Billion From US Government


The U.S. government has unveiled a revamped rescue package for insurance giant American International Group (AIG) that will provide the troubled company with an additional $30 billion on an "as needed" basis.

The U.S. Treasury said Monday AIG will repay the government with equity stakes in two of its Asia-based units.

The transaction will help AIG pay off some of the $40 billion it has drawn from its government line of credit and offset its quarterly losses.

The company announced a fourth-quarter loss of more than $60 billion on Monday.

That loss is the largest corporate loss in history, despite two previous government bailouts totaling $150 billion. The government 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 AFP, AP and Reuters

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