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Fed saves insurer with $85b loan

AIG was called too big to let fail

CHIP EAST/REUTERSNew York Governor David Paterson, with the state's deputy secretary for labor, Charlotte Hitchcock, and insurance superintendent Eric Dinallo, announced the bailout at a press conference yesterday. Full coverage of the financial crisis, C1. CHIP EAST/REUTERSNew York Governor David Paterson, with the state's deputy secretary for labor, Charlotte Hitchcock, and insurance superintendent Eric Dinallo, announced the bailout at a press conference yesterday. Full coverage of the financial crisis, C1. (CHIP EAST/REUTERS)
By Robert Gavin
Globe Staff / September 17, 2008

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The Federal Reserve will bail out insurance giant American International Group Inc. with a loan of up to $85 billion, taking an 80 percent stake in the struggling company. The rescue deal comes just days after the government refused to save investment firm Lehman Brothers Holdings Inc. from failure. (Full article: 1149 words)

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