Fed hosting crisis talks for insurance giant

The Federal Reserve Bank of New York is facilitating crisis talks between state insurance regulators, private sector investors and the management of American Insurance Group (AIG) to devise an emergency capital injection for the beleaguered insurance giant.

The immediate future of AIG, the world largest insurer, has been the focus of intense speculation following the implosion of Lehman Brothers on Monday and widespread problems in the financial sector.

AIG's share price has been in free fall

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