Updated from 1:14 p.m. EST
American International Group (AIG) confirmed widespread reports on Monday by reporting a huge quarterly loss and saying the government will provide additional aid to keep the insurance giant solvent.
The Treasury Department has created a new $30 billion equity capital facility in exchange for non-cumulative preferred stock in AIG, in addition to the $150 billion it has already lent the insurer. The Treasury and the Federal Reserve also outlined a massive restructuring plan for AIG's existing debt, easing up on terms and accepting payment in the form of preferred stakes in relatively healthy subsidiaries.
The new plan was unveiled as AIG reports a record fourth-quarter loss of $61.7 billion, or $22.95 a share. Those results compare with a loss of $5.3 billion, or $2.08 a share, a year earlier, and drastically fell short of estimates. Analysts surveyed by Thomson Reuters, on average, forecast a loss estimate of 37 cents a share on revenue of $24.82 billion.
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