Q: Was The Securities Lending A Cause of AIG Problems?

  • 2020 03 - Yale - YPFS - The Rescue of American International Group, Module B: The Securities Borrowing Facility - 18p
    • At some points, AIG accepted collateralization levels as low as 80% (from Credit Suisse) and 73% (from Barclays)7 (Hutchings 2010).
    • As markets roiled throughout the summer of 2008, AIG’s liquidity problems became increasingly clear to securities borrowers (GAO 2011, 19).