Treasury, Fed in pact to give AIG new $30 billion injection

Talk about your money pit. AIG is the black hole for taxpayer dollars. Stock market futures are down big. The Dow will be traidng below 7,000 at the open. This could be an important day and week for the market, be careful-Lou

Treasury, Fed in pact to give AIG new $30 billion injection

WASHINGTON (MarketWatch) -- The U.S. government's taking new steps to assist insurance and financial-services giant American International Group aimed at stabilizing the company in a way to protect taxpayers, the Treasury Department and the Federal Reserve Board announced. Most notably, a new equity capital facility is being established to allow AIG to draw down as much as $30 billion as needed over time in exchange for non-cumulative preferred stock to the Treasury.

New York-based AIG, in which Washington acquired a majority equity stake last year, "continues to face significant challenges, driven by the rapid deterioration in certain financial markets in the last two months of the year and continued turbulence in the markets generally," the government said.