American International Group will be allowed to use $20bn (€14bn) of assets held by its subsidiaries to provide cash needed for the troubled insurer to stay in business.

American International Group (AIG) Inc said it is reviewing its operations and discussing possible options with outside parties to improve its business after a week when its stock dropped 45% amid concerns about the company’s financial underpinnings.

Wall Street started the week with a mixed finish today as investors weighed up volatility in oil prices and new hope for the financial sector after Lehman Brothers posted results.