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Page last updated at 05:57 GMT, Wednesday, 17 September 2008 06:57 UK

US government rescues insurer AIG

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The US Federal Reserve has announced a $85bn (�48bn) rescue package for AIG, the country's biggest insurance company, to save it from bankruptcy.

The move follows the collapse of US investment giant Lehman Brothers, which caused share prices to plummet across the world's financial markets.

Emily Buchanan reports.

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