2008 Crisis

2008 Financial Crisis – Investigations COP – Congressional Oversight Panel FCIC – Financial Crisis Inquiry Commission Senate – Permanent Subcommittee on Investigations SIGTARP – Special Inspector General for TARP

Systemic Risk – 2008 Financial Crisis Precrisis, there was a longstanding assumption that banks were the only types of financial companies that could pose systemic risk. As you noted, during the crisis that was proved un-true. Investment banks, insurance companies, other nonbanks precipitated the economic collapse. (p10-11) –Jeremy C. Kress, Assistant Professor of Business Law,…

Cybercemetery digital.library.unt.edu/explore/collections/GDCC/ [Bonk: Some documents can’t be opened in Google Chrome, but can be opened in Firefox] 2008 0915 – Email followup to FRBNY Staff discussion from 9-15 am – 1p Dobbeck, Liebers, Charlton – Life Insurance Subs Implications cybercemetery.unt.edu/archive/cop/20110402041024/http://cop.senate.gov/documents/frbny-documents.pdf – [Bonk: Open in FireFox, doesn’t open in Google] wsj.com/public/resources/documents/WSJ_Systemic_Risk_of_AIG_Bankruptcy20080916.pdf COP June Report COP June…

Sarah Dahlgren She explained that most of the money drawn from the facility went to securities lending counterparties. Dixie asked how much money was drawn from the facility between September 16 and November 10 when the Maiden Lane transactions were announced. Ms. Dahlgren said “north of $60 billion, but I’d have to verify that.” (p2)…

2008 Financial Crisis – Causes AIG AIGFP Securities Lending / Repos GICs Risk Management Generally CDS, CDOs Derivatives Fear / Greed GLBA – Gramm–Leach–Bliley – Repeal of Leverage Mark to Market Accounting Monolines MBIA, AMBAC Mortgages Origination Subprime Rating Agencies Moody’s, Fitch, Standard and Poors Real Estate RMBS CMBS Regulation OTS State Insurance Regulators SEC…

Countrywide LC – In re Countrywide Financial Corp. Mortgage-Backed Securities Litigation Court: United States District Court, C.D. California 943 F. Supp. 2d 1035 (C.D. Cal. 2013) Date published: May 6, 2013 cwrmbssettlement.com/docs.php

Stable Value Prior to the Executive Life Insurance Company (ELIC) default there was no such thing as a stable value fund… — Murray L. Becker 1999 – SOA – Insurance Company Failures of the Early 1990s-Have We Learned Anything?, Society of Actuaries – 25p stablevalue.org/wp-content/uploads/Stable_Times_Volume_3_Issue_2.pdf 2011 – SEC-CFTC Stable Value Contract Study – Study of…

2008-09-12_Federal_Reserve_Bank_AIG_Meeting_Notes 2008 0912 – AIG Meeting Notes – 2p AIG – Jacob Frenkel (Vice Chairman), Steve Bensinger (CFO), David Herzog (SVP & Comptroller), Robert Gender (VP & Treasurer), Alan Pryor (EVP – Financial Services Division) FRBNY – Trish Mosser, Jim Mahoney, Bill Dudley AIG is facing serious liquidity issues that threaten its survival viability. Rating…

AIG – Unwinding Q: Did Insurance Regulators tell AIG to Wind-Down their Securities Lending Business? Unwinding in event of bankruptcy is likely to be very messy, because derivatives book is large and complex $2.7 Trillion, largely of very long-term structure products. 2008 0912 – FCIC – FRBNY / AIG Meeting Notes – 2p 2010 -…

2008 0912 – FCIC – 2008-09-12 Alejandro LaTorre Email to Geithner et al re Update on AIG 2008 0912 – FCIC – 2008-09-12 Alejandro LaTorre Email to Geithner et al re Update on AIG – 2p 2008 0913 – FCIC – FRB (Brian Peters/NY/FRS) -FRBNYAIG00510 We met with senior executives at AIG to discuss both their…

2008 Financial Crisis – Investigations

2008 Financial Crisis – Systemic Risk

CyberCemetery

Sarah Dahlgren

2008 Financial Crisis – Causes

Countrywide

Stable Value

2008-09-12_Federal_Reserve_Bank_AIG_Meeting_Notes

AIG – Unwinding

2008 0912 – FCIC – 2008-09-12 Alejandro LaTorre Email to Geithner et al re Update on AIG