Regulators - AIG - FCIC

  • OTS - Office of Thrift Supervision

  • State Insurance Regulators
    • New York - Eric Dinallo
    • Pennsylvania  - Joel Ario
      • Federal Aid to AIG Insurance, Regulators Panel

    • Texas - 
  • Securities lending did not pose systemic risk and would have been resolved without any Federal assistance, but for the Financial Products debacle, which caused the run on the bank that took a net of $20 billion in Federal funds to fully resolve.
  • It is more than $40 billion out, but $20 billion held by the Federal Government today.

--  TESTIMONY OF THE HONORABLE JOEL ARIO, INSURANCE
COMMISSIONER, PENNSYLVANIA INSURANCE DEPARTMENT,
ON BEHALF OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS

2009 0318 - Federal Aid to AIG Insurance, Regulators Panel

2008 0913 - FCIC - FRB email (Mosser) - SB-AIG-35651 - 1p

  • AIG has put together a term sheet for NYSID , which they will be discussing this evening.
  • The term sheet would outline all pieces of liquidity plan, and plans for debt and equity injections, plans for asset sales as well as regulatory forebearance to move assets from subs to parent.

  • NYSID: Dinallo outlined the same plan that AIG gave us earlier --- ie move muni's from P&C subs to parent, and parent send equity in life insurance subs to the P&C subs in return.
  • There are a number of multi-state regulatory hurtles to this, but Dinallo thinks it is possible to do.
  • Dinallo described P&C companies in NY and PA as having very large capital cushions, and so he thinks that they can accommodate this.
  • 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.
  • They are very happy to speak with our experts (Elise and team) tomorrow with more details.
  • My impression is that while they are comfortable with the capital dilution at the P&C companies, they are less knowledgable and comfortable about the equity value of the life companies, so they have work to do on that front.