AIG - Rating Agencies - 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,