AIG – Securities Lending – Building Up Cash

The Texas regulator grew concerned about the exposure in 2007.

At the time, AIG told Texas it recognized that it needed to retain more cash, Mr. Slape said.

2008 1008 - WSJ - AIG Increases Borrowings While Racing to Sell Assets - [link]

Elsewhere the 2007 10-K represented:

During 2007 AIG took steps to enhance the liquidity of its portfolios including increasing the liquidity of the collateral invested in the securities lending program.

Document 95 - Complaint - Case 1:08-cv-04772-LTS Filed 05/19/2009 - 307p