New York, NY —
As nervous investors try to understand the rapidly changing landscape of the financial industry, the State of New York is throwing one troubled company a life line.
REPORTER: Governor Paterson says the state will relax regulations, and allow the American International Group to lend itself $20 billion.
PATERSON: I want to underscore the fact that no taxpayer dollars are involved. This is not a bailout. This is only to allow AIG to provide a bridge loan to itself
REPORTER: The governor also expressed his support of AIG's request for a loan from the Federal Reserve. AIG is hoping to raise enough capital to fend off a credit downgrade. A downgrade would allow companies doing business with AIG to withdraw capital from their contracts, which could cause AIG to fold.