N.Y. Fed Takes Stakes in 2 A.I.G. Units

To reduce its crushing debt, the American International Group said on Tuesday that it had completed its plan to award the Federal Reserve Bank of New York a $25 billion stake in two of its big foreign life insurance subsidiaries... The transaction, known as a debt-for-equity swap, takes some pressure off A.I.G., which was at risk of a downgrade in its credit rating if the deal had not been completed, Mary Williams Walsh writes in The New York Times... Dealbook: N.Y. Fed Takes Stakes in 2 A.I.G. Units