The federal government is boosting its investment in embattled insurer American International Group Inc., providing the company with an additional $30 billion in capital on an as needed basis, but also exposing U.S. taxpayers to additional risk.
The new terms ease the financial burden on the company, which on Monday reported a $61.66 billion loss for the fourth quarter.
The Treasury Department and Federal Reserve announced the overhaul of the government's bailout of the firm in a joint statement early Monday. In addition to providing up to $30 billion in