Fed holds fresh AIG crisis talks

US authorities were on Monday fighting a fresh fire in the crisis on Wall Street, throwing a $20bn lifeline to AIG while convening a fresh set of crisis talks to deal with the troubled insurer that sits at the heart of the financial system.

The deal between AIG and New York state insurance regulators allows the company to access $20bn of assets from its own subsidiaries to use as collateral for a loan in an attempt to stave off a liquidity crisis and credit downgrades.