American International Group
has now borrowed
from the government in three weeks and is in a race against time to sell assets to pay off the loan, the
Wall Street Journal
The fall in financial markets is making it harder for the insurer to find buyers for its units, the
reports. The government originally said it would loan the company $85 billion but raised the amount to $122.8 billion on Wednesday.
The bulk of the
original loan has gone for two things: providing collateral to AIG's trading partners on credit default swaps, and covering losses in AIG's securities-lending program. When the threat of losses from the lending program mounted, the Fed had to step in again this week, the
The Federal Reserve on Wednesday agreed to provide AIG with a loan of up to $37.8 billion, in addition to the loan the government made to the insurer in September to help it avoid bankruptcy.
Nobody ever made a dime by panicking, says Jim Cramer. Moneymaking opportunities exist despite the market turmoil. So where's a market master like Cramer putting his money these days? Check out his personal portfolio at Action Alerts PLUS. Take a free trial now
This article was written by a staff member of TheStreet.com.