A call is being scheduIed with the NYID - Eric is agreeing to take the lead in a national battle plan on the regulatory control point. This is a good development.
GOV (House) - The Causes and Effects of the AIG Bailout- AIG Bailout Oversight Hearing, Panel 1 - [PDF-171p,
Testimony of E Dinallo Before the House Oversight Committee_1.pdf - 8p
2008 1014 - GOV (Senate) - The Role of Financial Derivatives in the Current Financial Crisis, aka Hearing to Review the Role of Credit Derivatives in the U.S. Economy - [PDF-135p,
Testimony Dinallo Before the Senate Ag Committee_1.pdf - 8p
2009 0303 - WSJ - Buyers Should Pay for Bond Ratings: The insurance industry is where a new model can best be launched., Eric Dinallo - [link]
2009 0305 - GOV (Senate) - American International Group: Examining What Went Wrong, Government Intervention, And Implications for Future Regulation - aka Government Intervention and Regulation of AIG - [PDF-72p, CSPAN, - Video-Senate-Error]
2010 0701 - FCIC Hearing - 2008 Financial Crisis and Derivatives, Day 2, Regulators Panel - [PDF-313p - CSPAN-Video
Testimony - Dinallo - Superintendent of the New York State Insurance Department - 20p
2010 0202 - WSJ - Eric Dinallo - What I Learned at the AIG Meltdown: State Insurance Regulation Wasn’t the Problem - [link]
My role was to make it clear that whatever happened with the AIG parent company, policyholders and the funds set aside to pay their claims, would be protected. In my congressional testimony, I said that AIG's insurance companies had adequate reserves to protect policyholders.
Mr. Geithner does not contradict that.
What he does say is that a bankruptcy of the parent company would have caused problems for the insurance companies, policyholders, and the insurance market as a whole.
I agree.
If AIG had gone bankrupt, state regulators would have seized the individual insurance companies.
The reserves of those insurance companies would have been set aside to pay policyholders and thereby protected from AIG's creditors.
However, as Mr. Geithner correctly points out, AIG's insurance companies were intertwined with each other and the parent company.
Policyholders would have been paid, but only after a potentially protracted delay. It would have taken time to allocate the companies's assets.
2021 0225 - YPFS Lessons Learned Oral History Project: An Interview with Eric Dinallo - 19p
2021 - Lessons Learned: Eric Dinallo, Journal of Financial Crises - 6p
2008 1014 - GOV (Senate) - The Role of Financial Derivatives in the Current Financial Crisis, aka Hearing to Review the Role of Credit Derivatives in the U.S. Economy - [PDF-135p,
(p34) - Eric Dinallo: And the reason that is important is I believe—I wasn’t in the Treasury’s mind, but I assume that when they decided to help AIG in coordination with us and when we decided to help the bond insurers, like MBIA and Ambac, part of our fear of letting them file for bankruptcy or putting them into what is called rehabilitation on the State side, was that no one would know how much was going to be triggered in CDSs and what the worldwide cascading effects of that were going to be.
That, to me, is just—of all the things to me, that is just one of the most unacceptable states that we are in, that regulators can’t tell you what the implication is going to be of financial services failures.
2021 - Lessons Learned: Eric Dinallo, Journal of Financial Crises - 6p
(p4) - Which is, even if I had caught it and demanded that we fix it, the amount of political energy that would have been leveled against me would be inconceivable.
Until the crisis happened.
(p6) - I wrote an op-ed for the [Financial Times] that lays out that there's a law, that [hedge fund manager] Bill Ackman and I argued about.
About not disparaging or questioning the solvency of an insurance company.
You can short the stock all day, and you can go out there and trash MBIA stock all day.
But when you start to question its solvency, that's actually against the law.
[2008 0731- FT (Financial Times) - Tackle false rumours about insurance companies, Eric Dinallo (New York Insurance Commissioner) - [link]
2021 0225 - YPFS Lessons Learned Oral History Project: An Interview with Eric Dinallo - 19p -