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The '''American Insurance Group''', more commonly known as '''AIG''', is one of the largest [[insurance]] companies in the world. During ==Bankruptcy==It was a major player in the [[Financial Crisis of 2008 financial crisis, ]] because it was bailed out by the Bush administration sold $441 billion in unhedged and the Federal Reserve after facing the prospect undercapitalized insurance on securitized debt, much of it tied to mortgage values. AIG sold many [[bankruptcycredit default swap]]s. Normally an insurance company "lays off" some of the risk by taking out insurance with another company. The government has spent over $170 billion AIG neglected to shore up AIG--with more coming--do this because it insured big banks against losses from never expected the securities that turned out to be "turn toxic" , which they did. Either someone paid the insurance or the nation's financial system would colapse, so the government stepped in, seized AIG, and lost much of their valuepaid the insurance. [[Image:Bonus09.jpg|thumb|400px]]

In March 2009 a firestorm of public protest exploded when it was discovered During the U.S. Treasury under Secretary 2008 financial crisis, [[Timothy GeithnerTARP]] had given out over $160 million in bonuses for work in 2008 to the AIG traders who caused over $60 billion in losses in 2008. A law to "claw back" the bonuses funds were made available by special taxes passed the House Bush administration and is before the SenateFederal Reserve after facing the prospect of [[bankruptcy]]. The House version applies to all bonuses by financial institutions that have received government has lent over $5 170 billion or more in federal bailous money, which includes all the larger to shore up AIG because it insured big banksagainst losses from securities that turned out to be "toxic" and lost much of their value. The public outrage seriously damaged prospects for the [[Obama AdministrationImage:Bonus09.jpg|thumb|400px]]'s plans to ask Congress for more bailout billions.