The AIG debacle : global impact and the need for government intervention / Peter A. Wayland, editor.

Format:

Book

Contributor:

Wayland, Peter A.

Series:

Global economic studies (Nova Science Publishers)

Global economic studies

Language:

English

Subjects (All):

American International Group, Inc.

Insurance companies--United States.

Insurance companies.

Global Financial Crisis, 2008-2009.

Business enterprises--State supervision.

Business enterprises.

Physical Description:

1 online resource (163 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, c2010.

Language Note:

English

Summary:

American International Group, Inc (AIG) (NYSE: AIG) is an American insurance corporation. This book consists of public documents which have been located, gathered, combined, reformatted, and enhanced with a subject index, selectively edited and bound to provide easy access.

Contents:

Intro

THE AIG DEBACLE: GLOBAL IMPACT AND THE NEED FOR GOVERNMENT INTERVENTION

CONTENTS

PREFACE

Chapter 1 AIG'S IMPACT ON THE GLOBAL ECONOMY: BEFORE, DURING AND AFTER FEDERAL INTERVENTION*

ONLY AIG'S DOMESTIC INSURANCE COMPANIES ARE SUBJECT TO STATE INSURANCE REGULATION

AIG FINANCIAL PRODUCTS WAS THE PROBLEM, NOT THE AIG INSURANCE COMPANIES

AIG FINANCIAL PRODUCTS AND HOLDING COMPANY ARE FEDERALLY REGULATED

AIG AND ITS INSURANCE COMPETITORS CONTINUE TO ENGAGE IN VIGOROUS COMPETITION

STATE INSURANCE REGULATION HAS PERFORMED WELL

STATE INSURANCE REGULATION MUST CONTINUE TO IMPROVE, INCLUDING SECURITIES LENDING

FINANCIAL REGULATION CAN BE IMPROVED WITH A COORDINATED APPROACH TO SYSTEMIC RISK

CONSUMER PROTECTION MUST REMAIN JOB ONE FOR INSURANCE REGULATORS

Chapter 2 CAPITAL MARKETS SUBCOMMITTEE HEARING STATEMENT ADDRESSED TO EDWARD M. LIDDY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR AMERICAN INTERNATIONAL GROUP (AIG)*

Chapter 3 TESTIMONY OF RODNEY CLARK, MANAGING DIRECTOR, RATINGS SERVICES, STANDARD &amp

POOR'S FINANCIAL SERVICES BEFORE THE SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE AND GOVERNMENT SPONSORED ENTERPRISES*

S &amp

P'S CREDIT RATINGS

S&amp

P'S AIG RATING HISTORY

Recent Ratings Actions on AIG

P's Current Outlook for AIG

The Relationship between AIG and Its Subsidiaries

THE EFFECT OF S&amp

P'S RATINGS ON THE DECLINE OF AIG

LACK OF INVOLVEMENT IN GOVERNMENT AID PACKAGES

CONCLUSION

Chapter 4 OPENING STATEMENT OF CHAIRMAN PAUL E. KANJORSKI BEFORE THE SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE AND GOVERNMENT SPONSORED ENTERPRISES*.

Chapter 5 TESTIMONY OF EDWARD M. LIDDY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, AMERICAN INTERNATIONAL GROUP (AIG) BEFORE THE HOUSE FINANCIAL SERVICES COMMITTEE ON CAPITAL MARKETS, INSURANCE AND GOVERNMENT-SPONSORED ENTERPRISES*

THE AIG FINANCIAL CRISIS: A SUMMARY

What Happened?

Initial Investment from the U.S. Government

Economic and Market Conditions Worsen

WHAT DOES AIG DO?

WHAT WENT WRONG?

WHY WAS AID RESCUED?

HOW MUCH MONEY IS AT RISK AND WHERE DID IT GO?

WHERE DID THE MONEY GO?

HOW WILL AIG REPAY THE U.S. GOVERNMENT SUPPORT?

HOW DID THE U.S. GOVERNMENT SUPPORT FOR AIG EVOLVE?

WHY DID AIG REPORT SUCH A LARGE LOSS IN THE 4TH QUARTER?

WHAT IS THE STATUS OF AIG'S FINANCIAL PRODUCT BUSINESS?

APPENDIX

Who Were AIG's Counterparties?- Securities Leading

AIG: Is the Risk Systemic?

What is Systemic Risk?

Risk Assessment Summary

How Big is the Systemic Risk in Insurance?

Impact on U.S. Government's Efforts to Stabilize Economy

AIG's Global Impact

General Impact on Economy

Life Insurance Policyholders:―Run on the Bank‖

Impact on Retirement Savings

Consumer Finance Impact

Extensive Business Disruption

Impact on Global Capital Markets

Direct and Indirect Impact of AIGFP Failure

Impact of Failure of ILFC

Seizure of Foreign Assets

Conclusion

AIG's Plans Going Forward

End Notes

Chapter 6 STATEMENT BY REP. CAROLYN MCCARTHY BEFORE THE SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE AND GOVERNMENT SPONSORED ENTERPRISES, FINANCIAL SERVICES COMMITTEE*

Chapter 7 STATEMENT OF SCOTT M. POLAKOFF, ACTING DIRECTOR, OFFICE OF THRIFT SUPERVISION BEFORE THE SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE AND GOVERNMENT SPONSORED ENTERPRISES*

I. INTRODUCTION

II. HISTORY OF AIG

III. OTS'S SUPERVISORY ROLE AND ACTIONS

Supervisory Responsibilities.

OTS Supervisory Actions

IV. LESSONS LEARNED

V. RECOMMENDATIONS

Systemic Risk Regulator

Regulation of Credit Default Swaps - Consistency and Transparency

VI. CLOSING

Chapter 8 FEDERAL FINANCIAL ASSISTANCE: PRELIMINARY OBSERVATIONS ON ASSISTANCE PROVIDED TO AIG

WHY GAO DID THIS STUDY

WHAT GAO FOUND

SUMMARY

BACKGROUND

AIG'S FINANCIAL PROBLEMS MOUNTED QUICKLY

Overview of Federal Assistance Provided

FEDERAL EFFORTS HAVE FOCUSED ON MAINTAINING AND MONITORING AIG'S SOLVENCY, BUT AIG FACES CHALLENGES IN REPAYING FEDERAL ASSISTANCE

Federal and State Monitoring Efforts Are Focused on AIG Solvency

AIG Faces a Number of Challenges to Its Ability to Repay Its Federal Funds

SOME OF AIG'S COMPETITORS CLAIM THAT AIG'S COMMERCIAL INSURANCE PRICING IS OUT OF LINE WITH ITS RISKS BUT OTHER INSURANCE INDUSTRY PARTICIPANTS AND OBSERVERS DISAGREE

APPENDIX I - TIMELINE OF AIG FINANCIAL DIFFICULTIES LEADING UP TO FEDERAL ASSISTANCE

Chapter 9 ONGOING GOVERNMENT ASSISTANCE FOR AMERICAN INTERNATIONAL GROUP (AIG)

INTRODUCTION

Too Big to Fail?4

SOURCES OF AIG LOSSES

AIG Financial Products

Securities Lending Program

LEGAL AUTHORITY FOR ASSISTANCE TO AIG

FORMS OF ASSISTANCE FOR AIG

Initial Loan

Securities Borrowing Facility16

Commercial Paper Funding Facility

November 10, 2008 Revision of Assistance to AIG

Loan restructuring

Direct capital injection

Executive compensation restrictions

Purchase of troubled assets

Residential Mortgage-Backed Securities/Maiden Lane II

Collateralized Debt Obligations/Maiden Lane III

March 2, 2009 Revision of Assistance to AIG

WHO BENEFITS FROM ASSISTANCE TO AIG?

End Notes.

Chapter 10 STATEMENT BY REP. MICHELE BACHMANN BEFORE THE HOUSE FINANCIAL SERVICES COMMITTEE HEARING ON OVERSIGHT OF THE FEDERAL GOVERNMENT'S INTERVENTION AT AIG*

Chapter 11 STATEMENT BY BEN S. BERNANKE, CHAIRMAN, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, BEFORE THE COMMITTEE ON FINANCIAL SERVICES*

REASONS FOR OUR ORIGINAL LENDING DECISION

THE FEDERAL RESERVE'S ONGOING INVOLVEMENT WITH AIG

LESSONS LEARNED FROM AIG

Chapter 12 STATEMENT BY WILLIAM C. DUDLEY, PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FEDERAL RESERVE BANK OF NEW YORK BEFORE THE COMMITTEE ON FINANCIAL SERVICES*

ROLE OF THE FEDERAL RESERVE BANK OF NEW YORK

EFFORTS TO REDUCE RISK AT AIG FINANCIAL PRODUCTS

ONGOING INVOLVEMENT WITH AIG

Chapter 13 STATEMENT BY TIMOTHY F. GEITHNER, U.S. SECRETARY OF THE TREASURY BEFORE THE COMMITTEE ON FINANCIAL SERVICES*

Chapter 14 OPENING STATEMENT OF CONGRESSMAN PAUL E. KANJORSKI, HOUSE COMMITTEE ON FINANCIAL SERVICES BEFORE THE HEARING ON OVERSIGHT OF THE GOVERNMENT'S INTERVENTION AT AIG*

Chapter 15 REPORT PURSUANT TO SECTION 129 OF THE EMERGENCY ECONOMIC STABILIZATION ACT OF 2008: RESTRUCTURING OF THE GOVERNMENT'S FINANCIAL SUPPORT TO AIG*

OVERVIEW

TERMS OF THE RESTRUCTURING

1. September Facility Restructuring

3. CDO LLC

INDEX

Blank Page.

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

1-61324-051-1

OCLC:

830627772