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US government bails out insurer | $85bn (£48bn) rescue package for AIG, the country's biggest insurance company, to save it from bankruptcy.

4. March 2011

The US Federal Reserve has announced an $85bn (£48bn) rescue package for AIG, the country's biggest insurance company, to save it from bankruptcy.

The plan involves a loan in return for an 80% public stake in the company.

AIG, which has a trillion dollars in assets and insures bank loans around the world, said it was continuing efforts to increase its liquidity.

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