Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? On this day in 2008, American International Group Inc AIG received an $85-billion bailout from the Federal Reserve. Where The Market Was: The Dow Jones Industrial Average closed at 11,059.02 and the S&P 500 traded at 1,213.59. What Else Was Going On In The World? In 2008, Illinois Governor Rod Blagojevich was arrested on federal corruption charges, including conspiracy to commit mail and wire fraud and solicitation of bribery. After 50 years as president of Cuba, Fidel Castro stepped down from the position. A U.S. postage stamp cost 42 cents. AIG Bailout: Prior to 2008, insurance giant AIG had been a typical boring, profitable insurance company. AIG ran into big problems when it ramped up its credit default swap selling in an effort to boost margins. When the housing market tanked, those swaps pushed AIG to the brink of bankruptcy.