Treasury Completes $29.8B Boost To AIG Rescue

MARTIN CRUTSINGER

WASHINGTON (AP) — The government has completed the transaction providing nearly $30 billion more in support to American International Group Inc., minus $165 million in bonus payments.

The Treasury Department also announced Tuesday that it has added Bank of America Corp. and Countrywide Home Loans Servicing to its mortgage relief program. That means a total of nine companies are participating in the $75 billion effort.

The department also approved the applications for six more banks to participate in the $700 billion financial rescue program, bringing the total number of banks being helped to 553.

The government has made four separate efforts to save AIG. The Obama administration announced it was providing the latest $30 billion on March 2, a day when the AIG also announced that it had lost $62 billion for the fourth quarter.

In all, including resources put up by the Federal Reserve, AIG has received $182 billion in government support as authorities have struggled to proposition up the giant insurer for fear of what a collapse might do to the already shaky U.S. financial system.