AIG has raised funds from a new Fed lending facility to repay part of a $123bn Fed loan that is keeping the stricken US insurer alive, in a move that could deepen the political backlash over its use of taxpayers’ money. AIG said yesterday that it had tapped a Fed lending window designed to kick-start the flagging commercial paper market and used some of it to pay back part of the government loan.

This entry was posted by Tracy Alloway on Friday, October 31st, 2008 at 3:48 and is filed under Capital markets. Tagged with aig, Commercial paper, Fed. Edit this entry.