Yep, that's $85 billion. It boggles the mind. From the NYT:
In an extraordinary turn, the Federal Reserve was close to a deal Tuesday night to take a nearly 80 percent stake in the troubled giant insurance company, the American International Group in exchange for an $85 billion loan, according to people briefed on the negotiations.
The loan was made to stave off a spreading financial crisis, caused by complex debt securities and credit default swaps. It comes after the Fed pumped in $87 billion to pay off the loans made by Lehman Brothers.
Other banks are creaking, including Washington Mutual. Hang on tight.