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The federal government agreed Monday to provide an additional $30 billion in taxpayer money to the insurer, even as it reported the biggest quarterly loss in history.
American International Group Inc's board approved the latest overhaul of a U.S. government rescue on Sunday that includes $30 billion in new equity and other measures aimed at bolstering the struggling insurer, according to a source familiar with the matter.
American International Group Inc is close to a deal with the U.S. government that would ease the terms of its bailout, provide a further equity commitment and help it pay down debt, a person familiar with the matter said on Saturday.
Citigroup and the U.S. have reached an agreement in which the government will increase its stake in the bank and in return will demand a boardroom shakeup.
The New York Attorney General's office has subpoenaed Bank of America to submit a list of employees who got bonuses and the amounts that the employees received, a spokesman for the New York Attorney General said on Thursday.
The Federal Reserve Board on Tuesday put more pressure on banks to cut dividends as conditions deteriorate, and said it would discourage the funding of such payouts with federal rescue money.