AIG’s financial difficulties stemmed primarily from two sources:
- Securities lending. Until 2008, AIG had maintained a large securities lending program operated by its insurance subsidiaries. The securities lending program allowed insurance companies, primarily AIG’s life insurance companies, to lend securities in return for cash collateral, which was then invested in investments such as residential mortgagebacked securities (RMBS). (p5)
- AIG’s securities lending program continued to be one of the greatest ongoing demands on its working capital, and FRBNY announced plans to create an RMBS facility—Maiden Lane II (ML II) —to purchase RMBS assets from AIG’s U.S. securities lending portfolio. (p8)
- Credit default swaps. AIG had been active, through its AIG Financial Products Corporation (AIGFP) unit, in writing insurance-like protection called credit default swaps (CDS) that guaranteed the value of CDOs.6 (p5)
2011 09 - GAO - Review of Federal Reserve System Financial Assistance to American International Group, Inc - 152p
- AIG – State of New York Issue of Winding Down SEC Loan
- TROUBLED ASSET RELIEF PROGRAM - The Government’s Exposure to AIG Following the Company’s Recapitalization -
- Eric Dinallo
- Terese Vaughan
- Roy Woodall
- Daniel Schwarcz
- Carolyn - New York Congresswoman
- Martin Sullivan
- Hank Greenberg
- Joseph Cassano
- Policies issued by American General Life Insurance Company (AGL), Houston, TX except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life).
- Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company.
- "federal aid to aig insurance"