The Federal Reserve agreed to provide American International Group ( symbol) with a loan of up to $37.8 billion, in addition to the loan the government made to the insurer in September.

Under the program, the New York Fed will borrow up to $37.8 billion in investment-grade, fixed-income securities from AIG in return for cash collateral. The securities were previously lent by AIG's insurance company subsidiaries to third parties, the Fed said in a statement late Wednesday.

The Associated Press reports AIG said the loan will help it secure funds on an as-needed basis.

The New York Fed said AIG "as expected" had already spent all of an $85 billion loan facility it received last month to help it avoid filing for bankruptcy.