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AIG in talks with Washington on 'challenges'

(Agencies)
Updated: 2009-02-24 10:40

WASHINGTON – US insurance giant AIG indicated Monday it was in talks with the authorities to cope with its "financial challenges" despite a massive bailout last year that prevented its collapse.

US insurer American International Group (AIG) office building is pictured in Tokyo December 24, 2008. [Agencies]

But the company did not comment directly on a news report that the additional funding was critical to keep it afloat amid expectations its financial result could be the worst to be reported by any American company.

"AIG has not yet reported fourth quarter and 2008 year-end results," said company spokesman Joseph Norton.

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"We continue to work with the US government to evaluate potential new alternatives for addressing AIG's financial challenges," he said in a statement.

Norton assured that the company "will provide a complete update when we report financial results in the near future."

American International Group's statement came after cable network CNBC reported that the company would report a US$60 billion loss next Monday and was seeking more government support.

The US government bailed out AIG for more than US$150 billion last year after a home mortgage crisis that sent shock waves across the global financial markets.

The bailout plan was the largest in US history and came as AIG burned through billions of dollars of cash and reported a third-quarter loss of US$24.47 billion.