AIG – Securities Lending – International

  • 2008 – NAIC – International Report – Issue No. 32-33 September – December. 2008 – 18p
  • Michael Mcraith – Illinois
    • Insurance and Systemic Risk – [PDF-181p, VIDEO-C-SPAN]
  • 2010 01 – BIS / The Joint Forum – Review of the Differentiated Nature and Scope of Financial Regulation Key Issues and Recommendations – 128p
    • Another issue AIG had to face came from its securities lending programme.
    • AIG‟s insurance undertakings essentially lent securities via this programme to other financial institutions outside the AIG group in exchange for cash collateral.
    • This money was then used by AIG Investments for investments in RMBS and other debt obligations.
    • News on the weakening state of AIG caused increasing numbers of lenders to return the securities and to regain their money from AIG.
    • This caused further liquidity difficulties for AIG.

→  Both activities <AIGSL-Securities Lending and AIGFP-Credit Default Swaps> contributed to a strong need for additional liquidity at AIG in September 2008.