Extra money is on top of $85bn loan deal.
The US Federal Reserve has continued its bail out of AIG and handed it a further $37.8bn.
The move is in addition to the $85bn rescue loan that gave the government control of the company last month and is designed to help AIG fund its troubled securities lending operations.
AIG has been forced to use some of the $85bn loan from the Fed for securities lending operations rather than to fund its core business.
The situation has prompted the Fed to intervene with a plan to borrow up to $37.8bn in investment-grade, fixed-income securities held in AIG’s securities lending programme and provide AIG with additional cash collateral.
The latest Fed move underlines the challenge facing AIG as it battles with adverse market conditions and rushes to raise capital to repay the government loan before it expires in 2010.
The company has announced a sweeping programme of asset sales that would reduce its revenues by almost half.
The Fed’s decision to provide new liquidity follows former AIG chief executives, including Brit Martin Sullivan face down an investigation by members of Congress in a heated hearing in Washington.
Chairman of the House of Representatives’s Henry Waxman accused AIG executives of going on a $370,000 retreat one week after the government had rescued the company.
