Fed urging Morgan, Goldman to lend AIG $70 billion

Section:

By Joseph A. Giannone
Reuters
Monday, September 15, 2008

http://www.reuters.com/article/marketsNews/idINWEN809420080915?rpc=44

NEW YORK -- The Federal Reserve has asked JPMorgan Chase and Goldman Sachs to explore arranging $70 billion to $75 billion in loans to support insurer American International Group, among other financing options, a person familiar with the situation said.

The Fed turned to Goldman and JPMorgan, AIG's financial adviser, to look at a range of possibilities. The credit facility, which would be syndicated to a number of banks, was just one option discussed, according to the source.

JPMorgan and Goldman declined to comment. The Fed said it was "supportive" of efforts by the two banks, and others, to raise funds for AIG.

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