Business

Editor: evewen
11 Nov 2008 03:28:54 GMT

WASHINGTON, Nov 10 – The U.S. Federal Reserve said
on Monday the government would buy shares of insurer American
International Group <AIG.N> as part of a restructuring of a
bail-out package intended to prevent the firm from collapsing.

The U.S. government would lower the interest rate on loans
to the firm, and establish two facilities to buy mortgage-backed
securities from AIG and collateralised debt obligations on which
AIG has written credit default swap contracts, the Fed said in a
statement.