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Monday, November 10, 2008

AIG, U.S. May Restructure Loan in $150 Bn Bailout Package

American International Group Inc., the insurer bailed out by the U.S., may get lower interest rates and more time to repay its debt in a new government rescue package valued at more than $150 billion.

The U.S. will revise the original $85 billion loan that saved the New York-based insurer in September by giving it $40 billion in exchange for preferred shares, and spending $52.5 billion to buy mortgage-backed securities from AIG, according to a person familiar with the situation.

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