Questions remain after historic Fed loan

The American government's decision to initiate a far-reaching rescue of American International Group (AIG) breaks a number of historic precedents and raises a number of fundamental questions about the role of government in the financial system.

The Federal Reserve will lend up to $85 billion in emergency funding to AIG in return for a government stake of 79.9% and effective control of the global insurance giant.

The Fed and the US Treasury also released the details of how they expect the loan to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account