The never-ending saga and black hole of cash continues. I'm sure they're minding their budget though and are no doubt only flying Business Class instead of First Class.
The 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. The government is buying preferred shares of AIG stock, giving it an ownership stake in the company.
As part of the new arrangement, the Federal Reserve is reducing a $85 billion loan it is 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.
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