Dots - Add - What Happened First - AIGFP or AIGSL?

2008 0916 - AIG Board of Directors Minutes 9/16/2008 - 24p 

(p8) - David Herzog, AIG Senior Vice President and Comptroller, then joined the meeting.

  • Mr. Herzog explained AIG's immediate liquidity needs.
  • He stated that AIG had used $10 billion to $11 billion through the securities lending program and was still approximately $4.5 billion short in that program.
  • Mr. Herzog then explained that because AIG did not have sufficient funds to pay the liabilities that would come due tomorrow, if AIG does not obtain a loan to provide funds for the next day, the securities lending program will go into default.
  • (p225) - 51 Herzog testified that the regulator he spoke with on September 16, 2008 allowed AIG to utilize $4.5 billion of insurance company liquidity to satisfy the needs of the securities lending program (Herzog: Trial Tr. 6971:8 – 6974:3).

Starr International Company, Inc. v. The United States - Case 1:11-cv-00779-TCW - Document 428 - PLAINTIFFS’ PROPOSED FINDINGS OF FACT - 573p

2018 0311- - Ross vs. Schwarcz: Scoring the Throw-Down, by R.J. Lehmann - [link]

  • For example, it is almost certainly the case that the securities-lending scheme undertaken by American International Group’s life insurance subsidiaries would have taken down the company by itself, had the collateral calls on AIG Financial Products’ credit default swaps not done so first.