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NEW YORK, Sept 16, 2008 (AFP) - The US Federal Reserve was close to finalizing a deal to rescue teetering insurance giant American International Group from collapse by extending an US 85-billion-dollar loan in exchange for a nearly 80-percent stake in the company, US media reported Tuesday.
All of AIG's assets would be pledged to secure the loan, according to the New York Times and CNBC business network, citing people briefed on the negotiations.
News of the talks came after Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke went to Capitol Hill late Tuesday to meet with top leaders of Congress, the Times reported.
Shares in AIG -- a company with one trillion dollars in assets and tentacles in many markets -- went on a roller-coaster ride on Tuesday, sliding 70 percent at the open, swinging into positive and then closing down 21 percent after a 60-percent plunge Monday.
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