Did Insurance Regulators tell AIG to Wind-Down their Securities Lending Business?

SEEFER: Do you recall whether or not any of AIG's insurance
regulators directed the company to reduce the balance of those
portfolios? I should have--that portfolio?
MURPHY: The securities portfolio.
SEEFER: The securities lending portfolio.

SULLIVAN: I don't have a recollection of being instructed. I
have a vague recollection of one regulator raising questions,
but not to the point where instructions were issued, as you articulated. Again from the best of my memory.
SEEFER: Which insurance department was that?
SULLIVAN: Well, you're stretching back. To the best of my knowledge, I think it was Texas. I think.
SEEFER: And understanding that you're not sure it was Texas,
what were the concerns?
SULLIVAN: Unfortunately, that's one question too many. I simply can't recall.
SEEFER: I mean let me try. Do you recall if their concerns were
just too high a level of exposure?
SULLIVAN: I simply can't recall.  (p127-128)

2010-06-17 Transcript of Interview with Martin Sullivan_1.pdf (FCIC)