Fed's Second Loan to Aig Worth $37b -- New Deal Will Help Insurer Secure Funds On As-Needed Basis

Summary

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CHARLOTTE, N.C. - The Federal Reserve on Wednesday agreed to provide insurance giant American International Group Inc. with a loan of as much as $37.8 billion on top of one made to the troubled company last month.

Under the new program, the Federal Reserve Bank of New York will borrow up to $37.8 billion in investment-grade, fixed-income securities from AIG in return for cash collateral. These securities were previously lent by AIG's insurance company subsidiaries to third parties.

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Fed's Second Loan to Aig Worth $37b -- New Deal Will Help Insurer Secure Funds On As-Needed Basis

The arrangement will help AIG secure funds on an as-needed basis, the New York-based insurer said in a statemen...

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