AIG reportedly near deal on new government bailout

NEW YORK: American International Group Inc. late on Sunday was reportedly near a deal for a revised bailout package from the US government that would make borrowing terms easier for the troubled insurer.

A proposed $123 billion bailout package would be replaced with a new $150 billion package, according to the Wall Street Journal.

Details of the arrangement could be announced as early as Monday, the Journal said. That's when AIG is scheduled to report its third-quarter results. The plan reportedly would replace an $85 billion two-year loan with a $60 billion five-year loan at a lower interest rate.

The government also reportedly would inject $40 billion into AIG in exchange for preferred stock.

AIG representatives were not immediately available for comment. The government had earmarked $85 billion in September for AIG's rescue. An additional $37.8 billion was made available in October.