According to a Wall Street Journal report, insurance giant AIG was close Sunday night to putting the final details on a new bailout deal from the federal government. The Wall Street Journal reported AIG's board was close to backing major changes to the terms of the $123 billion in loans extended to this point.
Under the potential plan, the government would trim the interest rate AIG is paying and use its authority under October's $700 billion bailout law to purchase $40 billion in preferred shares.
The government would also back billions of dollars in credit default swap agreements - essentially insurance contracts that AIG had sold to customers worldwide, and would support the insurer's business of securities lending.
Last month's bailout was among the top issues in the race for president, with many feeling it helped lead Barack Obama to victory last Tuesday.
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In a related story, a man who got drunk and drove his car into a utility pole has been given millions of dollars by the government so he can buy a new one.
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