<div><h1>DOWN AND UP AT AIG </h1><p>There's no rest for the weary at American International Group. On Nov. 30 a report by research firm Sanford C. Bernstein spotlighted a shortfall of $11.9 billion in reserves at AIG's property and casualty operations. That knocked 14% off the stock price. But the next day shares bounced partly back on the announcement of a plan to repay $25 billion of AIG's loan from the Federal Reserve Bank of New York. The deal sets up two special-purpose vehicles to pave the way for an IPO or sale of two major life insurance businesses, and the bank will be first in line for payback from the proceeds. That chops the insurer's credit line at the bank from $42 billion to $17 billion. All told, the government's assistance to the company stands at $120.7 billion. </p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=65212141&bid=informcom" /></div><div id="copyright"><div>

Copyright 2009  <a href="http://www.businessweek.com">BusinessWeek</a></div></div>