Monday, March 2, 2009

U.S. readies another $30B as AIG debt problems mount

posted by SooYeon(Pia), Shin

The government is preparing to offer AIG access to as much as $30 billion in new cash to keep it alive, according to several people with knowledge of the deal who spoke only on the condition of anonymity because of the sensitivity of the matter. In addition, the government will convert its previous investment in so-called preferred shares into shares that don't receive a dividend payment. Also, the government will gain a stake in two of AIG's insurance subsidiaries as payment for $35 billion of previous loans.

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