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US Government pouring US$40 billion into AIG

THE United States government has provided new financial assistance to troubled insurance giant American International Group, including pouring US$40 billion ($60 billion) into the company in return for partial ownership.
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The action was announced jointly yesterday by the US Federal Reserve and the Treasury Department. All told, the moves boost aid to the company to around US$150 billion.
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The US$40-billion infusion comes from the recently enacted US$700 billion financial bailout package. The government is buying preferred shares of AIG stock, giving it an ownership stake in the company.

AIG large third-quarter loss in continued financial turmoil

The assistance came as the company announced continued financial market turmoil resulted in a large third-quarter loss. It said it lost US$24.47 billion after a profit of US$3.09 billion a year ago.