NY DFS reopens probe into AIG

September 18, 2013 by Arthur D. Postal

New York Department of Financial Services (DFS) has reopened a probe into the risk management practices that led to American International Group’s (AIG) emergency takeover by the Federal Reserve Board in 2008.

In the DFS probe, disclosed in a June letter written by DFS superintendent Benjamin Lawsky, DFS examiners allege that AIG may have failed to properly measure and manage risk, misled supervisors and investors and lacked appropriate checks to limit outsized risk-taking.

The fact that the New York DFS is taking a fresh look at AIG’s troubled and controversial financial products (FP) subsidiary is ironically coming to light as the Obama administration observes the fifth anniversary of the financial crisis. Click here to read…

Originally Posted at LifeHealthPro on September 17, 2013 by Arthur D. Postal.