AIG - Rating Agencies - Downgrades - Triggers

  • reduced flexibility
  • 2008 0912 - FRB - Federal Reserve Bank of New York Meeting with AIG Notes - Mosser - FCIC-AIG0021217 - 2p
    • Ratings Downgrades Triggers
  • (p219) - Damon SILVERS. What you’ve said is, is that—you said that all kinds of terrible things would have happened had they defaulted on the collateral posting obligations.
    • But it was, but it’s the collateral posting obligations that were the triggering issue, right?
  • Jim MILLSTEIN. (Chief Restructuring Officer U.S. Department of the Treasury): The collateral posting obligations were actually triggered by the downgrade. The downgrade——
  • Mr. SILVERS. Yes, I know that. But that’s where the cash need was that week.
  • Jim MILLSTEIN. I’m sorry.
  • Mr. SILVERS. All the witnesses, all day long have said this.
  • Jim MILLSTEIN. And the——
  • Mr. SILVERS. You’re not disputing that.
  • Jim MILLSTEIN. And the securities lending part——
  • Mr. SILVERS. Right, exactly.
  • Jim MILLSTEIN. They refused to roll over——
  • Mr. SILVERS.  Okay, so we all agree.
  • Jim MILLSTEIN.  Okay. 

2010 0526 - COP - Hearing - TARP and Other Government Assistance for AIG - [PDF-241p,