Which U.S. investment bank’s 2008 collapse was followed by the federal rescue of AIG?

Lehman Brothers’ 2008 collapse was followed by the federal rescue of AIG.

Lehman filed for bankruptcy on September 15, 2008, after efforts to arrange a private acquisition failed. The event intensified the credit crisis because financial institutions worldwide were uncertain about their exposure to Lehman and to complex mortgage-related securities.

The next day, the U.S. government and Federal Reserve announced an emergency rescue package for American International Group, or AIG. AIG was not an investment bank like Lehman; it was a large insurance and financial-services company whose derivatives obligations created concerns about broader financial contagion.

The two events are often remembered together because they occurred during the crisis’s most dramatic week. They had different outcomes: Lehman entered bankruptcy, while AIG received emergency support and later repaid the assistance. Bear Stearns had been rescued earlier, in March 2008, which is another frequently confused timeline detail.