GLOBAL - The US Federal Reserve has granted global financing firms and their investors a last-minute rescue package by agreeing to invest up to $85bn (€60bn) in American International Group.

AIG confirmed in a statement this morning it will receive access to a two-year $85bn secured revolving credit facility which give the firm time to regroup and sell its assets "on an orderly basis", in return for 80% of the company to be held on behalf of US taxpayers.

Commentators had noted the US government could not afford for AIG to go under financially and politically as its derivatives and insurance financing operations are interwoven into almost all global economies, not least of which included China.

AIG claims to have over $1trn (€800m) in assets and equity but said "it has been recently experiencing serious liquidity issues".

AIG Europe is a largely insurance driven operation with offices in the UK, France, Germany and Switzerland but it provided the insurance support of many financial services firms - ETF Securities being among them and which yesterday saw trading in its assets suspended as some of its exchange traded notes are backed by AIG.

That said, it does provide pensions services to some companies, according to Pension Funds Online, include Switzerland's Leica GEO Systems and Electrolux plc.

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