Q: AIG – Where Did The Money Go? – Securities Lending

  • 2009 0315 – AIG Press Release – AIG Discloses Counterparties To CDS, GIA And Securities Lending Transactions – 6p
  • 2008 – AIG 10k, For the fiscal year ended December 31 – SEC-link-345p
  • 2009 0315 – AIG Press Release – AIG Discloses Counterparties To CDS, GIA And Securities Lending Transactions – 6p
  • 2009 1231 – Examination Report of AIG – AGC Life Insurance Company – Missouri – 25p
  • 2010 0430 – FCIC memo of staff interview with Sarah Dahlgren, New York Fed – 5p
  • 2010 0610 – COP – Report – The AIG Rescue, Its Impact on Markets, and the Government’s Exit Strategy – 337p
  • 2010 0812 – COP – Report – The Global Context and International Effects of the TARP – 162p
  • 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)

2010 0430 – FCIC memo of staff interview with Sarah Dahlgren, New York Fed – 5p

  • (p166) – At September 30, 2008, AIG had borrowed approximately $11.5 billion under the Fed Facility to provide liquidity to the securities lending program.

2008 – AIG 10k, For the fiscal year ended December 31 – SEC-link-345p

  • AGC Life Insurance Company operates as a holding company
  • AIG [Inc] made capital contributions [$18.3B] in 2008 to substantially offset these securities lending losses from funds primarily obtained from the U.S. government.

2009 1231 – Examination Report of AIG – AGC Life Insurance Company – Missouri – 25p

2010 0812 – COP – Report – The Global Context and International Effects of the TARP, Congressional Oversight Panel – 162p

(p80) – Foreign counterparties of AIG received government funds from AIG‟s payments through its securities lending program. AIG‟s foreign-based securities lending counterparties received $28.7 billion.332 

(p80) – 332 The following foreign-based securities lending counterparties received U.S. rescue funds:

  • <Total $28.7 Billion>
  • Barclays ($7.0 billion),
  • Deutsche Bank ($6.4 billion),
  • BNP Paribas ($4.9 billion),
  • HSBC ($3.3 billion),
  • Dresdner Kleinwort ($2.2 billion),
  • UBS ($1.7 billion),
  • ING ($1.5 billion),
  • Société Générale ($0.9 billion),
  • Credit Suisse ($0.4 billion),
  • Paloma Securities ($0.2 billion),
  • Citadel Securities ($0.2 billion).

2009 0315 – AIG Press Release – AIG Discloses Counterparties To CDS, GIA And Securities Lending Transactions – 6p

Attachment D – Payments to AIG Securities Lending Counterparties Institution Payments to Counterparties by U.S. Securities Lending

  • —  Total $43.7 <International 28.6 Billion / US – 15.1 Billion>
  • Barclays $7.0
  • Deutsche Bank 6.4
  • BNP Paribas 4.9
  • Goldman Sachs 4.8
  • Bank of America 4.5
  • HSBC 3.3
  • Citigroup 2.3
  • Dresdner Kleinwort 2.2
  • Merrill Lynch 1.9
  • UBS 1.7
  • ING 1.5
  • Morgan Stanley 1.0
  • Societe Generale 0.9
  • AIG International Inc. 0.6
  • Credit Suisse 0.4
  • Paloma Securities 0.2
  • Citadel 0.2
  • 2009 – FCIC – emails – FRBY-TOWNS-R3-002225 – big.assets.huffingtonpost.com/Dahlgren.pdf – 15p
  • (p3)  (2009 0303) – Sarah Dahlgren – [Federal Reserve Board] — separately, if the public wants to know where the funds have been used, AIG gave details of the uses of the government funds in its 10K that was issued on Monday — it’s on page 45 of the 10K ….. (and the *$20 billion to insurance companies shouldn’t go unnoticed …… )
  • For the fiscal year ended December 31, 2008 – AIG 10k – 344p
  • (p45) – Borrowings outstanding and remaining available amount that can be borrowed under the Fed Facility were as follows:
  • Inception through December 31, 2008  // Inception through February 18, 2009 (c) (In millions)
  • Borrowings:
    • Loans to AIGFP for collateral postings, GIA and other debt maturities ……… $ 46,997 //  $ 47,547
    • *Capital contributions to insurance companies (a) ……….. 20,850 // 20,850
    • Repayment of obligations to securities lending program . …. 3,160 // 3,160
    • Repayment of intercompany loans ………………… 1,528 // 1,528
    • Contributions to AIGCFG subsidiaries ……………… 1,672 // 1,686
    • Debt repayments ……………………………. 2,109 // 2,319
    • Funding of equity interest in ML III……………….. 5,000 // 5,000
    • Repayment from the proceeds of the issuance of Series D  Preferred Stock and common stock warrant ………..(40,000)  // (40,000)
    • Other(a)(b) ……………………………….. (4,516) // (6,890)
  • (a) Includes securities lending activities.