U.S. Treasury Department to fork out $85 billion to save AIG

Previously published on Yahoo! News

WASHINGTON - The U.S. government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG, the The Federal Reserve said Tuesday. The Fed determined that a "disorderly failure" of AIG could undermine already fragile financial markets. The government will receive an 79.9 percent equity stake in AIG, the Fed said...meanwhile the death toll in the wake of Hurricane Ike rose to 30 in Texas on Tuesday as officials in Galveston warned of a growing health threat on the island city that took a direct hit from the huge storm.