That makes nearly $144 Billion in just a couple weeks. How deep is this hole anyway?
American International Group has found another place to borrow billions of dollars from the government: the Federal Reserve’s commercial paper program.
The distressed insurance company disclosed Thursday afternoon that it was borrowing up to $20.9 billion from the Fed’s program, under which the central bank is buying companies’ short-term debt in an effort to unfreeze the market for commercial paper.
A.I.G. already has access to two government credit lines totaling $122.8 billion in order to avoid collapse, and the company’s borrowing from the commercial paper program enabled it to reduce its debt under those lines.