WASHINGTON (AP) -- The government is providing new financial assistance to troubled insurance giant American International Group, including pouring $40 billion into the company in return for partial ownership.
The action was announced jointly by the Federal Reserve and the Treasury Department. All told the moves boost aid to the company to around $150 billion.
The $40 billion infusion comes from the recently enacted $700 billion financial bailout package. In return for the money, the government gets partial ownership stake in the company.