AIG's Fed Bailout Reaches $143.8 Billion

Updated from Oct. 30

In an unexpected development, the Federal Reserve is indicating AIG's (AIG Quote) borrowing against credit lines was down $6.8 billion to $83.5 billion as of Wednesday night. Even so, instead of reducing reliance on federal funding, AIG this week asked taxpayers for another $21 billion in bailout money.

The reduction in fed borrowing reflects a voluntary repayment of $6.8 billion on the core $85 billion loan facility, pushing it down to $65.8 billion including $331 million in interest and fees. The securities lending program balance was reduced $300,000 to $17.7 billion.

AIG filed an application on Monday with the Fed for participation in the commercial paper funding facility (CPFF) for four subsidiaries unconnected with the insurance businesses. In an 8-K filing with the Securities and Exchange Commission Thursday, AIG states that the $21 billion would be used "to refinance AIG's outstanding commercial paper as it matures, meet other working capital needs and make voluntary prepayments under AIG's $85 billion credit facility with the Federal Reserve Bank of New York." ...