AIG officials are reportedly seeking an emergency bridge loan of $40 billion from the Federal Reserve Board in order to avoid a devastating ratings downgrade that could trigger a potential insolvency.
Over the weekend, the insurer has been working on a three-part plan involving asset sales, shifting regulated capital from insurance operations to the holding company, and working with private equity investors, said a person familiar with the negotiations.
AIG's board is considering the carrier's options after additional weekend meetings with New York insurance department officials to find a way for the carrier to avoid a downgrade and survive the subprime-generated financial market tsunami that has already forced Lehman Brothers to seek bankruptcy protection this morning.
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