The U.S. government has agreed to provide an additional $30 billion in taxpayer money to the American International Group and loosen the terms of its huge loan to the insurer, the U.S. Treasury and Federal Reserve said Monday.AIG also reported a $62 billion fourth quarter net loss Monday, the biggest quarterly loss in history. For all of 2008, AIG's loss was $99.3 billion.
The intervention is the fourth time that the United States has had to step in to help AIG, the giant insurer, avert bankruptcy. The government already owns nearly 80 percent of the insurer's holding company as a result of the earlier interventions, which included a $60 billion loan, a $40 billion purchase of preferred shares and $50 billion to soak up the company's toxic assets.