CORRECTED - WRAPUP 3-U.S. government increases AIG bailout to $150 bln
(Corrects figure on funds left for capital injections into non-banks to $60 billion from $30 billion in paragraph 13)
* US slashes AIG loan rate, takes $40 billion equity stake
* US to assume toxic mortgage assets that cost AIG dearly
* AIG posts $24.47 billion loss on massive capital losses
* AIG shares soar 43 percent in premarket trade (Adds details from Treasury, Fed)
By Mark Felsenthal and Lilla Zuill
WASHINGTON/NEW YORK, Nov 10 (Reuters) - The U.S. government dramatically boosted its bailout of insurer American International Group Inc (AIG.N: Quote, Profile, Research) and eased the terms of its loans to the company on Monday after an initial rescue plan failed to stabilize the company.
Under the new plan, the U.S. Treasury will take a $40 billion equity stake in AIG as part of a package of credits to prevent the collapse of what it called a "systemically important company." The Federal Reserve is providing up to $112.5 billion in loans and funds for asset purchases.
The new package, the largest bailout of a single company, provides AIG with about $27 billion more than previously extended and will leave the government exposed to billions of dollars of additional potential losses. Continued...
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