The New York Times reported Sunday that the Treasury and the Federal Reserve are close to a deal to invest an additional $40 billion into the insurance giant. If the restructured deal goes through, AIG would be on the hook to the American taxpayer for a whopping $150 billion that maybe borrowed at a lower interest rate and longer repayment horizon, according to Bloomberg. The government first provided AIG with an $85 billion emergency line of credit in September to keep it from shutting its doors, followed with another $38 billion loan after realizing the first amount was not enough.
The New York Times says that this additonal $40 billion would come from the $700 billion the U.S. government promised it would provide to buoy financial companies. The extra funds will help AIG retire part of its credit-default swap portfolio and strengthen its securities lending operations, Bloomberg said. - Gerald Magpily
See Bloomberg article
Comments
The U.S. government is reportedly close to lowering the interest rate and extending the repayment horizon of a bigger aid package of $150 billion to American International Group Inc. 
How can a company get so big that they don't immediately know the status of their assets, income, liabilities, etc..
From what I'm reading here, it seems to me that with our government initially rewarding the failure of AIG, they are now again rewarding the failure of the failure.
When you reward success, you get success.
When you reward failure, you get failure.
It really is as simple as that.
Virgil
http://www.KeepAmericaAtWork.com