A Washington-based trade group welcomed the government's takeover

A Washington-based trade group has welcomed the federal government's takeover of American International Group Inc. (AIG).

‘We applaud efforts to help stabilize financial markets,’ said Ken Crerar, president of The Council of Insurance Agents & Brokers.

He called AIG an ‘important and substantial player in the insurance market’.

‘We sincerely hope this effort by the Fed will calm and stabilise the market,’ added Crerar.

The Federal government agreed on Wednesday to provide an $85bn loan to AIG in exchange for nearly 80 % collateral in the company.