AIG Was Allowed to Select Its Own Regulator - Brightwork Research & Analysis

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Executive Summary

How AIG Selected its Regulator
How Did it Happen?

Introduction

This video by Matt Taibbi is amazing. Taibbi describes how AIG opened up a single thrift in Delaware, and designated itself a thrift and was then regulated not by a body specializing in insurance (which was AIG’s primary business), but by a regulatory body (The OTS), which had only one insurance expert on its staff. AIG has over a hundred and fifty thousand employees.

A tiny unit of AIG made a $500 million dollar bet with money they did not have.

How Did This Happen?

Only one way, government regulators are completely on the take. The areas that blew up were so obvious that they would blow up that it is mind boggling. The fact that any of these companies even exist anymore, much less have their reputations is simply mind boggling. It is a testament to how accepting the American population is to corruption, and how completely unlike a republic the US is (the US cannot aspire to democracy, as it was never intended to be one. However, it cannot even meet the description of the corrupt republic.)