AIG

AIG was a global insurance company with around $1 trillion in assets prior to their crisis. In 2008 they lost around $99.2 billion The company would have completely collapsed without bail from the government. The Federal Reserve Bank of New York decided to save the company with a loan of $85 billion because if the company failed the entire economy would be weakened. The involvement of AIG was too great, as it offered credit default swaps. This gave other banks security when they gave a risky loan. When the company began to fail, they did not have any money to give the other banks. The company was too interconnected with the economy and required assistance from the government.