Insurance giant AIG has reported a loss of $61.7bn (£43bn) in the final three months of 2008 - the largest quarterly loss in corporate history.

And the firm will receive an extra $30bn from the US government as part of a revamped rescue package.

AIG has already received $150bn in financial support - the biggest bail-out by far of any US company.

Stock markets slid sharply as AIG's plight underscored fears about the health of the global financial system.

The Federal Reserve and the Treasury said that AIG posed a "system risk" to the global financial system.

"The potential cost to the economy and the taxpayer of government inaction would be extremely high," they said.

BAIL-OUTS RECEIVED AIG - $180bn Bank of America - $45bn Citigroup - $50bn JP Morgan Chase - $25bn Wells Fargo - $25bn Goldman Sachs - $10bn Morgan Stanley - $10bn State Street - $3bn Bank of New York Mellon - $3bn

"The additional resources will help stabilise the company, and in doing so help to stabilise the financial system."

As well as insuring households, AIG plays a key role in insuring risk for financial institutions around the world.

The news of AIG's historic loss comes as HSBC, Europe's biggest bank, seeks to raise £12.5bn ($17.7bn) to strengthen its finances following a 62% fall in annual profit.