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AIG Taps $20 Billion From Insurance Subsidiaries

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AIG, which is looking to raise capital after ratings agencies threatened downgrades, will be permitted to access up to $20 billion locked up in its insurance subsidiaries, according to Reuters. As part of an agreement reach with New York Governor David Paterson, insurance regulator Eric Dinallo and other state officials, AIG will be able to shift the funds up to its parent company.
AIG's shares have begun to recover from their worst prices of the day, and are now down just 45 percent. Reuters adds that Dinallo is appealing to the federal government on AIG's behalf to provide it additional access to capital.
AIG gets New York's help in accessing $20 billion [Reuters]