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.

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Nichole Morford

Nichole Morford
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