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| AIG reports record $61.7bn loss | AIG reports record $61.7bn loss |
| (30 minutes later) | |
| Insurance giant AIG has reported a loss of $61.7bn (£43bn) in the final three months of 2008 - the largest quarterly loss in US corporate history. | Insurance giant AIG has reported a loss of $61.7bn (£43bn) in the final three months of 2008 - the largest quarterly loss in US corporate history. |
| And the firm will receive an extra $30bn from the US government as part of a revamped rescue package. | And the firm will receive an extra $30bn from the US government as part of a revamped rescue package. |
| AIG has already received $150bn in financial support - the biggest bail-out by far of any US company. | AIG has already received $150bn in financial support - the biggest bail-out by far of any US company. |
| Stock markets slid sharply as AIG's plight underscored fears about the health of the global financial system. | |
| In a joint statement, the Federal Reserve and the Treasury said that AIG continues to face significant challenges. | In a joint statement, the Federal Reserve and the Treasury said that AIG continues to face significant challenges. |
| "The additional resources will help stabilise the company, and in doing so help to stabilise the financial system," it said. | "The additional resources will help stabilise the company, and in doing so help to stabilise the financial system," it said. |
| The news of AIG's historic loss comes as HSBC, Europe's biggest bank, seeks to raise £12.5bn ($17.7bn) to strengthen its finances following a 62% fall in annual profit. | |
| Revamp | |
| The revamped rescue package also involves a restructuring of AIG's operations. | |
| It calls for the Federal Reserve to take stakes in two of AIG's international units in exchange for reducing AIG's debt. | |
| The new measures will also effectively cut the interest payments the insurer must pay to the Federal Reserve. | |
| The AIG financial support is about three times greater than that given to Citigroup, which has received $50bn, and Bank of America, which has received $45bn. | The AIG financial support is about three times greater than that given to Citigroup, which has received $50bn, and Bank of America, which has received $45bn. |
| US officials fear that a failure of AIG would be disastrous for both the US and the global economy. | US officials fear that a failure of AIG would be disastrous for both the US and the global economy. |