Q: Did The Insurance Regulators Communicate A View To The Federal Reserve Or To The Treasury During This Period That The Parent of AIG Had To Be Rescued?
- (p145) - Damon SILVERS. - Did you all communicate a view that—did your department or did, to your knowledge, other insurance regulators communicate a view to the Federal Reserve or to the Treasury during this period that the parent of AIG had to be rescued in the manner that it was rescued?
- Michael Moriarty (Deputy Superintendent for Property and Capital Markets, New York State Insurance Department) - No, we didn’t.
2021 - YPFS Lessons Learned Oral History Project: An Interview with Eric Dinallo - 19p
(p17-18) - Eric Dinallo: Geithner asked about, because they're seriously considering, giving serious thought about a debtor in possession—DIP—thing for AIG.
- He's like, "What do you think?"
- I'm like, "It's a horrible idea."
- He said, "Why?
I said, "Because while it looks possible on paper, and I get the point.,,
- If you file for bankruptcy at the holding company level, all these subsidiaries, they're going to start ...
- Some states may even require by law … that the states will seize the operating companies, because the holding company filed for bankruptcy.
- They're going to pull up the drawbridge, and go into castle mode.
- Then you're going to have a run on insurance companies."
While I'm saying this, I swear to God, CNN is on. We took a break, and CNN was on.
- They were lining up in Singapore for, I don't know why, but at AIG's insurance company in Singapore, they were lining up.
- They were acting like a run-on-the-bank moment.
- Probably to check on their insurance policy.