Which U.S. investment bank's failure in 2008 was followed by the government rescue of AIG?

Lehman Brothers' failure in 2008 was followed by the government rescue of AIG.

Lehman Brothers filed for bankruptcy on September 15, 2008, after efforts to find a buyer failed. The bankruptcy sharply increased uncertainty in global credit markets, as banks and investors could no longer easily assess which institutions were exposed to failing mortgage-related assets.

The next day, the U.S. Federal Reserve authorized an emergency loan that helped prevent the collapse of American International Group, or AIG. AIG had sold enormous amounts of credit-default-swap protection and faced demands for collateral as housing-related securities lost value.

Lehman and AIG were different kinds of institutions: Lehman was an investment bank, while AIG was a large insurance group and financial conglomerate. Their linked crises demonstrated how derivatives and interconnected obligations could transmit losses across the financial system.