AIG, States Work Together to Raise Cash

American International Group(AIG Quote) is getting help from the insurance commissioners of New York and Pennsylvania in raising cash by swapping its subsidiaries' liquid assets for those that are difficult to convert into cash held by the parent company.

"If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims," said Sandy Praeger, president of the National Association of Insurance Commissioners and Kansas insurance commissioner, in a press release today. "Our job is to ensure they continue to have the ability to pay."

AIG shares slid today as the insurer met for a second day at the New York Federal Reserve Bank to discuss its capital-raising options after ratings downgrades. AIG was given permission by the New York state insurance commissioner to leverage the assets of subsidiaries to raise up to $20 billion, New York Gov. David Paterson said Monday. ...