Tuesday September 16, 9:04 pm ET
Government announces $85 billion loan to rescue AIG to stave off further financial turmoil
WASHINGTON (AP) — The U.S. government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG, The Federal Reserve said Tuesday.
The Fed said the U.S. Treasury Department was in full support of the decision.
The Fed determined that a “disorderly failure” of AIG could undermine already fragile financial markets.
The government will receive an 79.9 percent equity stake in AIG, the Fed said.