WASHINGTON, March 1 Pumping $30 billion more of
U.S. taxpayer funds into embattled insurance giant American
International Group Inc. (AIG.N) is ultimately cheaper than
letting it collapse and endanger the broader economy, a person
familiar with the matter said on Sunday night.
The U.S. government will announce the latest cash infusion
for AIG on Monday morning, along with a series of other
measures that are designed to better position it to sell some
assets and try to find a route toward long-term viability.
The source, who spoke on condition of anonymity, said AIG
posed a significant systemic risk for the U.S. financial system
and as long as that was the case there might be a need for
continued government aid.
(Reporting by Glenn Somerville; Editing by Tomasz Janowski)