The US Federal Reserve last night struck a deal to take control of AIG in return for an $85bn loan to stave off a collapse of the giant insurer that plays a crucial role in the global financial system.

Under the plan, the latest dramatic intervention by the US government to combat the global credit crisis, the authorities will receive equity giving them a 79.9 per cent stake in AIG. +In return, the insurer would receive a bridge loan of $85bn to keep it afloat until it could dispose of billions of dollars in assets.