Administration March 5, 2009
Dinall: AIG's SecLending Unit had 'Manageable' Losses
March 5, 2009 (PLANSPONSOR.com) - The securities
lending unit of American International Group Inc. was being
successfully wound down and had manageable losses if not for
the firm's massive credit default swap exposure, New York
Insurance Superintendent Eric Dinallo said on
Thursday.
Reported by Fred Schneyer
Dinallo told lawmakers that AIG’s financial products unit, which had written about $440 billion in CDS, should have been subject to more and better regulation, according to a Reuters report.
“Without the crisis caused by Financial Products, there is no reason to believe there would have been a run on the securities lending program,” Dinallo told the Senate Banking Committee in prepared remarks. “We would have continued to work with AIG to unwind its program and any losses would have been manageable.”
Dinallo’s testimony is available here .