NEW YORK (AP) -- Insurer AIG says it is suspending dividends on its common stock.
American International Group Inc., one of the world's largest insurers, was bailed out by the government last week. The government provided an $85 billion loan to AIG, which has been hit hard by liquidity issues amid the ongoing credit crisis. In return for the loan, the government received options to purchase a nearly 80 percent stake in the company.
The insurer had previously paid a quarterly dividend of 22 cents per share.
Shares of AIG rose 17 cents, or 3.6 percent, to $4.89 in afternoon trading.
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