The Federal Reserve bailed out troubled insurance company American International Group (AIG) with an $85 billion loan on September 16, 2008. In return, the government received an 80% stake in the company. On November 10, 2008 the government raised the loan to $150 billion. AIG received an additional $30 billion on March 2, 2009.Los Angeles Times: Feds give AIG $30 billion more (March 2, 2009)

In the first week of April 2009, a special inspector general for TARP began an audit of AIG, a reaction to third expansion of the bailout. In particular, legislators want to know if AIG paid more than necessary to banks like Goldman Sachs.Bloomberg: AIG’s Bank Payments Probed by TARP Inspector General (Update3) (April 7, 2009)

Without the influx of cash, the massive insurance company would have had to file for bankruptcy, a move which could have sent world financial markets into a tailspin.The New York Times: Fed to Give AIG $85B Loan and Take 80% Stake (September 16, 2008)

AIG has paid out several bonuses since receiving the federal loans, but the most criticized bonuses were paid out in March 2009. The bonuses amounted to a total of $165 million. The decision to pay the bonuses despite the fact that AIG received over $170 billion in federal rescue funds was met with outrage by some. President Barack Obama said his administration would attempt to block the payments. AIG said it was contractually obligated to pay the bonuses.CNN Money: 73 At AIG Received Bonuses Of $1 Million Or More (March 17, 2009)

On April 7, 2009, media sources reported that the Federal Reserve plans to provide AIG's aircraft-leasing unit a $5 billion line of credit. The line will help AIG prepare to sell off the business, which is believed to be viable if it could be separated from AIG.Bloomberg: Federal Reserve Said to Offer $5 Billion Credit for AIG’s ILFC (April 7, 2009)