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AIG Systemic Risk.pdf

aig-is-the-risk-systemic-2009.pdf

🔗 Source: file.wikileaks.org

📊 Size: 131 KB

📄 Pages: 21 pages

⬇️ Downloads: 91

Summary

AIG's business model poses systemic risk due to its interconnected $1 trillion insurance and financial services businesses, which could lead to a cascading failure of the entire system if one player is eliminated. The company's over-reliance on US residential mortgage-backed securities and weakness in commercial mortgage-backed securities, global real estate, and equities markets have deepened its problems. AIG's failure could trigger a global economic crisis, causing turmoil in US and global markets, and having catastrophic unforeseen consequences. The US government's support is crucial to prevent AIG's failure, which could lead to a loss of confidence in other large financial institutions, a decrease in the attractiveness of US government securities, and an increase in borrowing costs.

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Description

AIG's business model poses systemic risk due to its interconnected $1 trillion insurance and financial services businesses, which could lead to a cascading...

Technical Information

File Format: PDF
File Size: 131 KB
Pages: 21
Language: EN
Total Downloads: 91
Last Updated: 6 days ago

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