U.S. Is Said Set to Provide A.I.G. Another $30 Billion

- By Kevin Yu

The federal government is preparing to loosen the terms of its huge loan to the American International Group and provide another $30 billion to the insurer as it prepares to report the biggest quarterly loss in history on Monday, $62 billion, people involved in the discussions said Sunday night.

The intervention marks the third time that A.I.G., the giant insurer, has had to seek assistance from the federal government. The government already owns nearly 80 percent of the insurer’s holding company as a result of the earlier interventions, which included a $60 billion loan, a $40 billion purchase of preferred shares and $50 billion to soak up the company’s toxic assets.

The deal would have the government commit another $30 billion in cash to A.I.G. from the Troubled Assets Relief Fund, should the company need it, according to the people involved in the talks.

A.I.G. is not expected to draw down the money immediately. Instead, the money is intended to assure credit-rating agencies that A.I.G. can make good on its debts to the government and to private lenders.

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