Federal Reserve to Give AIG Another $37.8B

By John Johnson,  Newser Staff
Posted Oct 8, 2008 6:25 PM CDT
The AIG logo is shown Wednesday, Sept. 17, 2008 in New York.   (AP Photo)
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(Newser) – These days, $85 billion just doesn't go as far as it used to. The Federal Reserve said today it will provide AIG with an additional $37.8 billion to help the beleaguered insurance giant out of its liquidity mess, Bloomberg reports. The money is on top of the massive loan it got last month. The New York Fed will provide the additional cash to AIG's life insurance subsidiaries in exchange for investment-grade, fixed-income securities.