AIG Allowed To Borrow From Subsidiaries

American International Group Inc. will be allowed to use $20 billion of assets held by its subsidiaries to provide cash needed for the troubled insurer to stay in business, New York Gov. David Paterson said Monday. The move comes as AIG continues to review its operations and discuss alternatives with outside parties, reportedly including Warren Buffett''s Berkshire Hathaway Inc., to improve its business amid concern the world''s largest insurer could need up to $40 billion to shore up its balance sheet. Paterson asked New York state insurance regulators to essentially allow AIG to provide a bridge loan to itself. The governor has also asked the head of New York''s insurance department to talk with federal regulators about providing an additional bridge loan to AIG.

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