AIG Has Drawn $90.3 Billion of $123 Billion Government Loans

American International Group Inc., the insurer saved from bankruptcy by a federal bailout, has borrowed $90.3 billion from the 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 Sept. 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.

(Reporting by Lilla Zuill; editing by John Wallace)

Latest Comments

• October 28, 2008 at 1:23 am

  Anonymous says:

  State Farm Insurance's chairman and CEO received an 82 percent raise after the company posted a record profit last year, a statement from the Bloomington-Ill.-based insurer sa... read more
• October 27, 2008 at 4:22 am

  Baxtor says:

  Amen Reverend. Unlike these Harvard degree idiots, Joe and Doctor J who think the messiah works through CEO's and large businesses including governments. Let the greedy fail.... read more
• October 27, 2008 at 3:45 am

  Reverend-CPCU,CLU,FLMI says:

  I only want a one million dollar bailout. I'll be real quiet about it. I'll lock up my rented house full of new furniture(no principle or interest until June 2009) take my new... read more