FCIC - AIG - GICS

  • 2008 0912 - FRB (From: Hayley Boesky/NY/FRS) - Subject AIG panic - FCIC-SSI0000710 - FRBNYAIG00511 - 1p
    • More panic from HFs.
    • Now focus is on AIG.
    • I am hearing worse than LEH.
    • Every bank and dealer has exposure to them.
    • People I heard from worry they can't roll over their funding.
    • Were big writers of GIC and negative basis buyers.
    • Estimate I hear is 2 trillion balance sheet.
  • 2008 0913 - FCIC - FRB email (Mosser) - SB-AIG-35651 - 1p
    • He also noted negative consequences in insurance markets in general if AIG goes down (ie cost of insurance is likely be much higher if they file) and negative consequencies in muni bond market if GICs default so regulatory forbearance can be justified politically.