.png){kind=icon}
Return
AIG in Hindsight
.png){kind=icon}
OA
AI
DOI：10.1257/jep.29.2.81.png)
.png){kind=icon}
Original request for help.png){kind=icon}
Share.png){kind=icon}
Save
Abstract
En 中文
The near-failure on September 16, 2008, of American International Group (AIG) was an iconic moment in the financial crisis. Two large bets on real estate made with funding vulnerable to bank-run-like dynamics pushed AIG to the brink of bankruptcy. AIG used securities lending to transform insurance company assets into residential mortgage-backed securities and collateralized debt obligations, ultimately losing at least $21 billion and threatening the solvency of the life insurance companies. AIG also sold insurance on multisector collateralized debt obligations, backed by real estate assets, ultimately losing more than $30 billion. These activities were apparently motivated by a belief that AIG's real estate bets would not suffer defaults and were money-good. We find that these securities have in fact suffered write-downs and that the stark money-good claim can be rejected. Ultimately, both liquidity and solvency were issues for AIG.
Keywords:
RISK
Journal
J
IF:
8.8
Papers:
1.8K
Citations:
2.0W
Organization
Cited Papers
p75NTR Ectodomain Ameliorates Cognitive Deficits and Pathologies in a Rapid Eye Movement Sleep Deprivation Mice Model.png)
Neuroscience
NeuroscienceIF0
PREAI
ShareSave
ShareSaveShareSaveLocal self-similarity as a dense stereo correspondence measure for themal-visible video registration
PREAI
ShareSaveShareSaveShareSave no more
no more