US Insurer to get further $27bn, according to reports.
See also: AIG posts $24bn Q3 loss & Treasury forces AIG to curb exec compensation
Troubled US giant insurer AIG is reported to have secured a further $27bn (£17bn) in government support after a weekend of talks ahead of releasing third quarter results today (Monday 10 November).
The loan, which takes Federal support to $150bn, is to help it cut its interest repayments and sell more assets.
Just two months ago the Federal Reserve took an almost 80% stake in the insurer. Reports suggest the new deal swaps an $80bn two-year loan for a $60bn five-year loan, slashing interest payments.
The Federal Reserve is also understood to be taking over AIG’s credit swaps and mortgage-backed securities – the worst hit credit crunch assets that are haemorrhaging cash. Under the deal, if the assets do increase in value, the Fed keeps two-thirds of the profits with AIG getting the rest.
AIG is due to announce its third quarter results and 8.30 EST (GMT -5) today, with a live internet broadcast.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
