$85 Billion Not Enough To Save AIG

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The Federal Reserve has announced it will give insurance giant American International Group another $38 billion in loans. This comes on top of $85 billion that AIG already received last month. The company is linked to a lot of parts of the financial system, including mutual funds and credit default swaps.

The company was supposed to sell off some of its assets to start paying back the original loan, but has yet to make a payment. Wall Street Journal reporter Sudeep Reddy explains why the first loan wasn't enough and where the money went. He says this loan is less risky to taxpayers because it is linked to the regulated company, whereas the previous loan was not.

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