Sullivan & Cromwell gets AIG rescue mandate

<a class=Sullivan & Cromwell gets AIG rescue mandate” />US insurance giant AIG has drafted in Sullivan & Cromwell to advise it on its $20bn (£11.1bn) lifeline from New York state regulators.

The facility will allow AIG to borrow money off its balance sheets using its subsidiaries as security and it is understood that further emergency funding is currently being arranged.

The Sullivan team is understood to include the firm’s chairman and finance partner Rodgin Cohen (pictured), M&A partner Robert DeLaMater, derivatives partner and co-head of corporate Robert Reeder III, banking partner Mark Welshimer and banking partner Michael Wiseman.

Sullivan’s Cohen also advised Fannie Mae on its recent bail-out by the US Treasury, which was advised by Wachtell Lipton Rosen & Katz (as reported on TheLawyer.com 8 September).

Yesterday’s market turmoil on Wall Street (15 September) now involves a large number of New York and City firms. Linklaters and Weil Gotshal are acting on the Lehman Brothers administration, Shearman & Sterling and Wachtell have bagged roles on the Merrill Lynch takeover by Bank of America and Cravath Swaine & Moore and Davis Polk & Wardwell the $70bn (£39.6bn) emergency liquidity facility set up by leading banks.