Sullivan, Davis Polk in second AIG bailout

Sullivan & Cromwell and Davis Polk & Wardwell have secured roles on US insurance giant AIG’s additional $37.8bn (£21.77bn) funding.

Sullivan chairman Rodgin Cohen is ­leading a team advising AIG, while Davis Polk partners Bradley Smith and Marshall Huebner are advising the US Treasury and the Federal Reserve Bank of New York.

The move comes after AIG received an $85bn (£48.96bn) bailout from the US government just three weeks ago. Under the new deal the New York Federal Bank will seize control of $37.8bn in investment grade, fixed income securities from the insurance provider in exchange for cash.