CNBC Reports Fed Could Help AIG Shore Up Finances

CNBC has reported that American International Group may work out some kind of deal with the Federal Reserve to shore up its finances by the end of the day.   
   
Under pressure from New York Governor David Paterson and AIG policyholders, the Federal Reserve is considering reversing its decision on Monday and providing some kind of financial aid to the troubled insurer.   
   
The Fed has met with the company's advisors throughout the day, and has come to a better understanding of what is needed to help the company through its current crisis, people familiar with the negotiations said. These people said there is hope that a Fed-funded plan could be reached by the day's end.   
   
As these talks continue, C.V. Starr, the company of former AIG CEO Hank Greenberg, said it may try to take over the insurer in a proxy fight or tender offer, according to a regulatory filing on Tuesday.

Published on September 16, 2008