Praise for N.Y. Insurance Chief Dinallo

New York officials helped giant insurer American International Group Inc. strike the historic loan deal with the Federal Reserve that is keeping AIG afloat.

Gov. David Paterson called it “great news” that will preserve jobs and, because of it, “our financial recovery will be easier, if not sooner.”

Paterson singled out his superintendent of insurance, Eric Dinallo, for helping preserve the opportunity for AIG to come to a deal with the federal bank. He said the state’s offer to help AIG reach into its subsidiaries to borrow $20 billion bought time for the larger deal.

The $20 billion borrowing didn’t turn out to be necessary once the federal agreement was struck.

“Policyholders will be protected, jobs will be saved,” Paterson said.