
The plan calls for AIG to transfer some assets to provide necessary cash for short-term liquidity, a move that requires regulatory oversight approval from the New York Insurance Department. AIG will undertake a series of transactions that are expected to raise about $20 billion, solving the company’s immediate cash liquidity problem. Additionally, Gov. Paterson has sent Insurance Superintendent Eric Dinallo to work with the Federal Reserve on a plan to help AIG.
These transactions will protect the company’s policyholders, which is a pre-condition of the Insurance Department’s approval. Additionally, the Insurance Department will continue to closely monitor AIG to ensure it has the assets to pay claims.
Dinallo added: “Under Governor Paterson’s direction, we are working closely with AIG to craft a transaction that will stabilize an important New York insurance company, while protecting policyholders. This continues our work with the bond insurers where the State proactively produced market-based commercial solutions. We will continue to implement the Governor’s program of creative and pragmatic regulation that promotes growth while protecting policy holders and consumers.”
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