In an unprecedented move, the U.S. government has stepped in and taken control of American International Group Inc. (AIG), CNNMoney reported.

The Federal Reserve Board last night authorized the Federal Reserve Bank of New York to lend AIG $85 billion, and in return the federal government will receive a 79.9 percent stake in the company.

“[A] disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance,” the Fed said in a statement.

The line of credit will be available to AIG for two years and is designed to help the company meet its obligations, the Fed said.