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Feds lend $85B to rescue beleaguered insurer AIG

In a bid to save financial markets and economy from further turmoil, the U.S. government agreed last night to provide an $85 billion emergency loan to rescue the American International Group, the world's largest insurer, in exchange for a 79.9-percent equity stake in the company.

The Federal Reserve said it determined that a disorderly failure of AIG could hurt already delicate financial...

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