• (p141) - Chair Elizbeth WARREN.  So I want to be clear, if I can, about setting the stage a little bit for this panel.
  • If you’ve read the testimony from the Fed and we’ve had multiple meetings now with the Fed, they basically have made the argument that negotiation was simply not possible, and that it was not possible because negotiation under these circumstances, particularly in the case of rapid dissent, is never possible, that ratings downgrades would have triggered multiple cross-defaults and contagion throughout the market, and that the insurance regulators would have seized the  insurance companies and therefore destroyed the value of the entity and possibly caused losses to the insured, people around the country.
  • So the reason we asked this panel to come is that we wanted to probe that claim.
  • That’s what we’re here about, to just push back on this alternative.

2010 0526 - COP - Hearing - TARP and Other Government Assistance for AIG - [PDF-241p