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Fed, Treasury Announce New Aid For AIG


NPR's business news starts with a new and bigger bailout for AIG.

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MONTAGNE: The Treasury and the Federal Reserve today announced a new bailout package for the troubled insurance giant AIG. The Federal Reserve has already extended the company more than $120 billion in funding. That hasn't stabilized it. Now the Fed and the Treasury have come up with a new, rejiggered rescue package that replaces previous measures. It includes lower interest rates on loans and the purchase of $40 billion in AIG shares. The total cost of this new AIG bailout is about $150 billion. Transcript provided by NPR, Copyright NPR.