Rapidly tapping into taxpayers’ money, American International Group has accessed about $90 billion from the government since the Federal Reserve came to its rescue last month.
AIG said Friday that as of October 22, it had outstanding borrowings of $72 billion under the two-year $85 billion revolving credit facility. It is using these funds primarily for collateral obligations related to the AIG Financial Products Corp. credit default swap portfolio and for general corporate purposes.
In addition, AIG subsidiaries had received $18 billion in cash collateral in exchange for third-party, investment-grade, fixed-income securities borrowed by the New York Fed under AIG’s $37.8 billion securities lending agreement arranged with the Federal Reserve Bank of New York.
AIG’s stock dropped 18 percent Friday on the news, to $1.70.