Filed Under:Markets, Company News

NY DFS reopens probe into AIG

The New York Department of Financial Services (DFS) has reopened a probe into the risk management practices that led to American International Group’s (AIG) emergency takeover by the Federal Reserve Board in 2008.

In the DFS probe, disclosed in a June letter written by DFS superintendent Benjamin Lawsky, DFS examiners allege that AIG may have failed to properly measure and manage risk, misled supervisors and investors and lacked appropriate checks to limit outsized risk-taking.

While focusing on Lehman’s collapse on the 15th, the government’s involvement in AIG’s resurrection was more intense.

It was the evening of Sept. 16, 2008 that Federal Reserve general counsel Scott Alvarez announced that AIG’s board had agreed to sell 79.9 percent of the company to the Fed in exchange for $85 billion in cash.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date


Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.