Politics & Government

September 16, 2008 10:24 PM

AIG deal gives government nearly 80 percent of insurer

The Federal Reserve Board's drastic move late Tuesday to shore up faltering insurer American International Group was another in a series of unprecedented efforts to stave off a global financial crisis. Under the deal, the Fed will provide an $85 billion emergency loan to AIG in return for a nearly 80 percent stake. The government will control the company's dividends. The Fed's action provided little comfort to investors on Wednesday, however, as the Dow Jones Industrial Average tumbled 447 points, or 4 percent.

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