2008 – AIG – Sandbox

2008 0807 - Moody's - Global Credit Research Rating Action - Rating Action: American International Group, Inc. - Moody's reiterates negative outlook on AIG; US life ops negative
- AIG SunAmerica funding agreement-backed note programs -- AIG SunAmerica Global Financing Trusts, ASIF I & II, ASIF III (Jersey) Limited, ASIF Global Financing Trusts -- senior secured debt at Aa2. (p329p)

FCIC - Moodys Follow Up Exhibits - Rating Committee Memos for AIG - 784p

As a recognized bank regulatory expert said (name withheld because he deals with the Fed) wrote about this section:
- WTF? The bankruptcy of a parent only matters if the parent has guaranteed the sub's liabilities or there's some sort of integrated operation that can be disrupted.
- The FDIC's whole single-point-of-entry proposal is premised on the idea of the parent going bankrupt while the subs are ring-fenced and seamlessly moved to a bridge bank.
- Heck, that's the FDIC receivership model already more-or-less.
- In any case, insurance solvency regulation is based around the sub - I don't think it involves the parent at all.