In 2008, AIG suffered catastrophic financial losses totaling roughly $99 billion for the full year (including a record-shattering single-quarter net loss of $61.7 billion in the final quarter of 2008). These historic losses were driven primarily by reckless underwriting of credit default swaps and mortgage-backed securities derivatives through its Financial Products subsidiary in London, which required an emergency federal bailout to prevent a systemic market collapse.
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