Fed lends an additional $38 billion to troubled AIG
By Greg Robb
October 8, 2008 4:43 PM
WASHINGTON (MarketWatch) -- Evoking its emergency powers to combat financial market stress, the Federal Reserve on Wednesday said it was lending $37.8 billion in additional cash troubled American International Group Inc. Under the program, the New York Federal Reserve Bank will borrow $37.8 billion in investment-grade, fixed-income securities from certain insurance subsidiaries of AIG in return for the cash. AIG already has an $85 billion line of credit with the Fed. As of last week, AIG had used $60 billion of this loan, according to Fed data. This new program will allow AIG to replenish liquidity, the Fed said.
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