AIG wins new bailout, posts losses

American International Group Inc, the insurer bailed out by the US, got an expanded government rescue package valued at more than $150 billion after posting a fourth straight quarterly loss.

The US will reduce the original $85 billion loan that saved New York-based AIG in September to $60 billion, buy $40 billion of preferred shares, and purchase $52.5 billion of mortgage securities owned or backed by the company, according to the Federal Reserve. The insurer lost $24.5 billion, or $9.05 a share in the period ended Sept 30, compared with profit of $3.09 billion, or $1.19, a year earlier, AIG said in a regulatory filing yesterday.