A team of executives with experience in the insurance industry should be retained to produce an examiner's report regarding why American International Group (AIG) needed a $180 billion bailout, and to detail exactly who benefited from the government's help.
A report furnished by Anton Valukas of the law firm Jenner & Block LLP provides the outline for a similar report on American International Group, Inc., going beyond what Neil Barofsky, Office of the Special Inspector General for the Troubled Asset Relief Program, has done.
The true understanding of AIG's Financial Products Division, its employees, its board of directors, and above all, its "insurance product" has not been ascertained. No one has come forward with the actual AIG credit default swap that took the company down.
Where were the independent auditors? Where was the board of directors? Where was the National Association of Insurance Commissioners (NAIC)? Where was the SEC? Where was the insurance stock analyst working for the investment firm? Where were AIG's internal audit departments? How many actual credit default policies were sent to AIG's compliance department? Did AIG even have a compliance department?
Insurance companies require actuarial consulting firms to verify loss reserving practices, both as to methodology and amount of losses. Where was the actuarial report for the Financial Products Division?
A report analyzing AIG's demise would enable politicians, regulators, investors, and the general public to understand how the largest insurance company in the world required $180 billion of the public's money, under the new economic term "too big to fail."