# AIG deal (also referred to in German)

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- Post ID: 588430
- Modified: 2023-07-25T20:47:33+00:00
- Language: en

## Definition

In the course of the subprime crisis, which turned into a financial crisis, American International Group (AIG), formerly the world's largest insurance company, came to the brink of bankruptcy. The Federal Reserve Bank of New York - as part of the central bank - rescued AIG in September 2008 with a loan of up to USD 85 billion. In return, the U.S. Treasury took control of the group. - This bail-out, in which the central bank and indirectly the government propped up the company, was seen as a "cardinal sin of a central bank." It was also criticized that the central bank also accepted shares in AIG as collateral for a two-year loan it had granted. - See Buybacks, Central Banking, European Monetary Union, Fundamental Error, ECB Sin, Money Lender of Last Resort, Moral Hazard, Sovereign Wealth Funds, Redistribution, Central Bank-Inspired. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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