3 Mar 2009

AIG bailout unavoidable - White House

9:55 am on 3 March 2009

The White House says the latest government bailout of the American insurance AIG was unavoidable.

A spokesperson says it was necessary to prevent the insurance group from posing a further threat to the financial system.

Stocks in the United States tumbled after AIG got more government assistance , following a record quarterly loss of $US61.7 billion, fuelling fears the global financial crisis is getting worse.

AIG will receive an extra $US30 billion from the US government. It previously received $US150 billion last year.