Struggling insurance giant AIG, recipient of the largest government bailout in history, has burned through three-quarters of its $123 billion financial lifeline, the Washington Post reports. As of yesterday, AIG has withdrawn $90.3 billion from the Federal Reserve’s credit line, mostly to pay off bad bets insuring toxic mortgage investments made by banks, and the company’s new CEO warned that the bailout may not be enough.
In September, the Federal Reserve Bank of New York gave AIG an $85 billion loan to keep it afloat, and the Fed later offered $38 billion more in credit liquidity. The insurer has tapped $72 billion of the first loan and $18 billion of the second. Attempts to sell its assets for cash have been hindered by a lack of financing, a problem AIG helped to create.