Which insurance company received an $85 billion bailout from the Federal Reserve in 2008?

Which insurance company received an $85 billion bailout from the Federal Reserve in 2008? American International Group (AIG). On September 16, 2008, the Federal Reserve authorized the Federal Reserve Bank of New York to lend AIG up to $85 billion.

AIG was a huge global insurer, but its crisis was driven largely by activities beyond traditional insurance. Its financial-products division had sold enormous amounts of credit default swaps linked to mortgage-related securities. When housing-related assets deteriorated, AIG faced collateral calls and severe liquidity pressure, threatening its ability to meet obligations.

The initial support was structured as a secured two-year revolving credit facility, not simply a no-strings cash gift. The rescue was later expanded and restructured through additional Federal Reserve and Treasury programs. The U.S. government argued that AIG’s disorderly collapse could destabilize banks, markets, and the broader economy during the financial crisis.

People often confuse the initial $85 billion Federal Reserve facility with the full value of government assistance, which changed as the rescue evolved. The question’s specific amount identifies AIG, not another insurer such as MetLife or Prudential Financial.