Dow slides below 7,000; AIG takes $62B hit

Wall Street's benchmark Dow Jones index plunged below 7,000 points Monday -- a 12-year low -- after U.S. insurance giant AIG revealed monumental quarterly losses of $62 billion.AIG's results came hours after the U.S. government announced a $30 billion lifeline for the ailing company on top of $150 billion it has already received in bailout funding. The U.S. government, saying it needed to prevent broad damage to the financial system, announced Monday it was again restructuring the bailout of AIG. But the intervention did little to calm the nerves of U.S. investors, already reeling from bruising selloffs last week. By noon in New York, the Dow had slid about 3 percent to a 12-year low. The Nasdaq and the S&P 500 were also down. AIG dragged down other U.S. financial stocks, including Bank of America, Wells Fargo, Morgan Stanley, Goldman Sachs and JPMorgan Chase.