American International Group Inc., the largest U.S. insurer by assets, has been given special permission to access $20 billion of capital in its subsidiaries to free up liquidity, New York Governor David Paterson said.

The move buys AIG time to negotiate for help from the Federal Reserve, Paterson said today at a New York City press conference. AIG fell 58 percent today in New York trading to its lowest level in two decades.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.