Governor of New York, David A. Paterson announced that the state is implementing a multi-billion dollar finance plan to help secure the financial stability of AIG (American International Group), the world’s largest insurance company.

The good news for taxpayers and homeowners?  The plan does not rely on tax money so NY homeowners should not feel the financial burden of this plan.

The state’s plan includes a series of transactions with AIG that will help raise immediate funds.  These funds are needed to help pay claims to AIG’s policyholders.

“Wall Street’s continuing problems should serve as a stark reminder that this recession is far from over.  New York State has taken the first step towards helping to stabilize AIG, which is otherwise a very healthy company.  On a state level, we are able to reach a market-based solution that will stabilize AIG at no cost to New York taxpayers”, said Paterson.

AIG policyholders are being reassured that their policies are safe, and still effective.

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