AIG - Can't Say
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.