Why AIG can’t fail

The decision to add $30 billion to the insurance giant's bailout

What happened

Insurance giant AIG and the U.S. government agreed to a fourth bailout for AIG, which is reporting a $62 billion loss Monday, the largest quarterly loss in history. The new deal involves another $30 billion in federal dollars—the U.S. already owns almost 80 percent of AIG, after putting up $150 billion over five months. The government will get stakes in two profitable AIG life insurance subsidiaries. (The New York Times)

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