2021 - YPFS Lessons Learned Oral History Project: An Interview with Eric Dinallo - 19p

(p17-18) - Eric Dinallo: Geithner asked about, because they're seriously considering, giving serious thought about a debtor in possession—DIP—thing for AIG.

• He's like, "What do you think?"
• I'm like, "It's a horrible idea."
• He said, "Why?

I said, "Because while it looks possible on paper, and I get the point.

The operating companies are healthy, like the way an airline would do it.

• If you file for bankruptcy at the holding company level, all these subsidiaries, they're going to start ...
• Some states may even require by law … that the states will seize the operating companies, because the holding company filed for bankruptcy.
• They're going to pull up the drawbridge, and go into castle mode.
• Then you're going to have a run on insurance companies."

While I'm saying this, I swear to God, CNN is on. We took a break, and CNN was on.

• They were lining up in Singapore for, I don't know why, but at AIG's insurance company in Singapore, they were lining up.
• They were acting like a run-on-the-bank moment.
• Probably to check on their insurance policy.

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