U.S. taxpayer’s bailout of AIG: $180 billion

Today the U.S. Treasury announced that it is giving another $30 billion to the world's largest insurance company AIG.

Today AIG also had an announcement: a quarterly net loss of $61.66 billion.

Total amount now given to AIG: $180 billion.

The AIG funding eclipses the $50 billion that Citigroup has received from the U.S. Treasury, and the $45 billion that Bank of America has received.

From "The Wall Street Journal":

"The new deal, the government's fourth for AIG, represents a nearly complete reversal from the one first laid out in mid-September. Back then, federal officials acted as a demanding lender, forcing the insurer to pay a steep interest rate for what was expected to be a short-term loan. Now the government is relaxing loan terms by wiping out interest in hopes of preserving AIG's value over a longer period."

In other words, the U. S. government is very afraid of AIG collapsing.

Meanwhile in other news, AIG's ex-CEO sued the company today.