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AIG's collapse had nothing to do with life insurance. It was driven by a division called AIG Financial Products which wrote the infamous credit default swaps to
by sfifs 8y ago
AIG's collapse had nothing to do with life insurance. It was driven by a division called AIG Financial Products which wrote the infamous credit default swaps together with equity based lending. Arguably it reinforces the learning that integrated financial giants shouldn't be allowed
https://www.investopedia.com/articles/economics/09/american-investment-group-aig-bailout.asp https://www.investopedia.com/articles/economics/09/american-...
- paganel 8y agoI know it had nothing to do with life insurance and I also think that the article is wrong when focusing on that part of the business, but it is correct when saying that a company like Prudential should have remained on that too-big-to-fail list. When you’re handling ~USD 1.4 trillion you are at the center of the financial system.