AIG - Securities Lending - International

  • 2008 - NAIC - International Report - Issue No. 32-33 September - December. 2008 - 18p
  • Michael Mcraith - Illinois
    • Insurance and Systemic Risk - [PDF-181p, VIDEO-C-SPAN]

2010 01 - BIS / The Joint Forum - Review of the Differentiated Nature and Scope of Financial Regulation Key Issues and Recommendations - 128p

Another issue AIG had to face came from its securities lending programme.

  • AIG‟s insurance undertakings essentially lent securities via this programme to other financial institutions outside the AIG group in exchange for cash collateral.
  • This money was then used by AIG Investments for investments in RMBS and other debt obligations.
  • News on the weakening state of AIG caused increasing numbers of lenders to return the securities and to regain their money from AIG.
  • This caused further liquidity difficulties for AIG.

→  Both activities <AIGSL-Securities Lending and AIGFP-Credit Default Swaps> contributed to a strong need for additional liquidity at AIG in September 2008.