WASHINGTON (AP) - The decision by the Federal Reserve to offer a bailout to insurance giant AIG is getting support inside the White House and on Capitol Hill.
New York Senator Charles Schumer says the $85 billion of taxpayer money loaned to AIG is an "unprecedented step" for an unprecedented time. But, he says simply, "the alternatives are much worse."
White House spokesman Tony Fratto says the move was made to promote "stability in financial markets," while "limiting damage to the broader economy."
New York officials who feared a fiscal crisis in the state are also relieved. Governor David Paterson says "policy holders will be protected, jobs will be saved."