Ed Liddy

  • AIG
  • AllState
  • 2009 0402 - Letter - Congressman Gary C. Peters to Liddy - 2p
  • Government Hearings
    • [PDF - 380p   VIDEO-CSPAN] 
  • marketplace.org/2008/10/22/aig-ceo-edward-liddy-interview-transcript/

    • Ed Liddy: Well, our insurance subsidiaries are absolutely rock solid. There’s no issue with any of those. These are the, the unregulated or non-regulated financial products that have caused us our difficulties. But the variable annuities and the fixed annuities and the auto insurance, or the commercial insurance, we are rock solid in that area.   

    • And the NAIC, the National Association of Insurance Commissioners, who regulate our business, have come out and said that. That’s not our issue. Our issue is products outside that core.

  • (p60) - As former CEO Liddy explained in an interview, "It's an interesting structure where you have an insurance company that works really well and on top of it is a holding company and the holding company's biggest asset is this huge hedge AIGFP. Andrew Sorkin, The Case for Saving A.I.G., by A.I.G., N.Y. Times, Mar. 2, 2009.4  [link] "It just doesn't make sense to me." Id
  • (p61) - AIGFP thus led AIG to "stray[] from its core competencies in the insurance business" and suffer a virtual collapse. Liddy Testimony at 3.

1:08-cv-05722 - American International Group, Inc. ERISA Litigation
II

  • 2012 - Document 137 - Consolidated Second Amended Complaint - 230p
  • Mr. CAMPBELL. Talk about the life insurance subsidiary for a second. I know that in your—I believe it was the company’s evaluation of systemic risk, that is where you believe there is a great deal of systemic risk, but there is a lot of counterparty liabilities to other life insurance companies. Is that true?
  • Mr. LIDDY. It is in both. (p94)

      • Edward Libby testified about operations and business practices at American International Group (AIG) before, during, and after federal intervention.
        • 2:15:28 - Carolyn Maloney:  bad regulatory decision?
        • - Liddy: yes
        • all life insurance companies would have been in trouble... asset prices....capital markets
    • House - COMMITTEE ON FINANCIAL SERVICES -SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE, AND GOVERNMENT SPONSORED ENTERPRISES
  • (p63) - Spencer BACHUS (R-AL). - Mr. Liddy, mark-to-market, I think, is good in concept, but insurance and banking CEOs are telling me that it is not working well in a distressed market.
    • I would like your comments on modifications others have proposed, and general modifications, and how it might help AIG to increase the likelihood of the taxpayers being fully reimbursed.
  • Ed LIDDY. (AIG-CEO) - Yes, sir. I think mark-to-market is a good concept, run amok.
    • On balance, knowing what something is worth every day is a good thing, but it presumes that there’s a market.
    • It presumes that there’s a willing buyer and a willing seller.
    • When liquidity completely dries up, there’s not a willing buyer, so you have to keep marking the value of the assets down to an unwilling buyer level.
    • In insurance companies, we have a long liability.
    • We will insure your life.
    • And we will match it with a long dated asset.
    • Those long dated assets, like commercial mortgage-backed securities and residential mortgage-backed securities, because they’re long-dated, they are not liquid right now, and they have been buffeted in value, unlike anything most of us have ever seen.
    • So as a result of that, AIG and many other insurance companies have had to write the value of those assets down, and it has caused great stress on the liquidity.  

2009 0318 - GOV (House) - American International Group's Impact on the Global Economy: Before, During, and After Federal Intervention