AIG to Receive $30 Billion More in Bailout Funds: Reports

The reports go on to state that AIG will report a huge quarterly loss on Monday, $62 billion.

The company is one of the chosen ones that are considered "too large to fail." AIG previously received about $150 billion in help from the government, which now has an 80% stake in the company.

The prior bailout funds included a $60 billion loan, a $40 billion purchase of preferred shares and $50 billion to buy up AIG's "toxic assets."

The reports indicate that the government will allocate another $30 billion in funds from TARP, the Troubled Asset Relief Program begun during the Bush Administration. The money would be provided as a standby line of equity that AIG could access if necessary.

According to the reports, the government would reduce more of AIG's debt by rather than required AIG to pay back $38 billion in cash with interest that it has used from a Federal Reserve credit line, the government will not get equity stakes Asia-based American International Assurance Co. and American Life Insurance Co.

According to the New York Times,

Both units are performing well. This would give the government direct ownership in those subsidiaries and provide sellable assets to American taxpayers even if the A.I.G. holding company were to default on its loans.

Shares of AIG closed at 42 cents per share, yes, 42 CENTS on Friday. The stock traded at $49.50 a year ago.