AIG borrows $90.3 billion from Federal Reserve
NEW YORK (Reuters) - American International Group Inc, the insurer saved from bankruptcy by a federal bailout, has borrowed $90.3 billion from the U.S. Federal Reserve.
Figures released by the Fed late on Thursday showed that as of Wednesday, AIG had drawn down $3 billion more than a week earlier.
AIG has borrowed $72.3 billion, or 85 percent, of an initial $85 billion bridge loan extended by the government on September 16.
In addition, it has drawn $18 billion under a subsequent $37.8 billion securities lending agreement the government agreed to extend earlier this month.
The company is scrambling to sell off parts of its business to repay the bridge loan, which carries hefty interest and fees.
In total, the government has put about $123 billion at AIG's disposal.
AIG Chief Executive Edward Liddy earlier this week said on a PBS television broadcast said he hoped but was not certain that $123 billion would be enough.
Liddy said AIG was working to "stop the bleeding" in a financial products unit that is the source of the company's $25 billion in mortgage losses over the past three quarters -- losses that have crippled the company.
AIG shares were down sharply in early trade on Friday as broader markets fell over fears of a global recession. The stock was trading at $1.87, a drop of more than 11 percent.
(Reporting by Lilla Zuill; editing by John Wallace)
- U.S. small businesses boosted borrowing in October to its highest level in over six years, an index showed on Tuesday, fresh evidence that the budget battle that shut the federal government for 16 days did little to derail underlying economic growth.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.