AIG hands $20bn rescue mandate to Sullivan

US insurance giant AIG drafted in Sullivan & Cromwell to advise it on its $20bn (£11.23bn) 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 includes ;the ;firm’s ­chairman and finance ­partner Rodgin Cohen, ;M&A ;partner ;Robert DeLaMater, derivatives partner and co-head of ­corporate Robert Reeder III, and banking partners Mark ;Welshimer ;and Michael Wiseman.

Cohen also advised Fannie Mae on its recent bailout by the US Treasury, which was advised by Wachtell Lipton Rosen & Katz.

Last Monday’s turmoil on Wall Street now involves a large number of New York and City firms. Linklaters and Weil Gotshal & Manges are acting on the administration of Lehman Brothers, Shearman & Sterling and Wachtell have bagged roles on the Merrill Lynch takeover by Bank of America, while Cravath Swaine & Moore and Davis Polk & Wardwell are advising on the $70bn (£39.29bn) emergency liquidity facility set up by leading banks.