AIG London unit not regulated by FSA
Sunday 15 March 2009
The London-based AIG subsidiary blamed for almost bankrupting the US bond insurance giant was not regulated by Britain's Financial Services Authority.
AIG, now 80 per cent owned by the US government following a $160bn (£115bn) bailout, has admitted that toxic assets bought by its London office caused its problems. While questioning claims that the UK operation lost $500bn, AIG said: "This small unit engaged in trades that nearly brought down the company and its still-sound insurance business."
The Mayfair-based AIG Financial Products business is registered in Delaware and avoided regulation by the UK watchdog. The company's Connecticut parent is regulated by the US Office of Thrift Supervision, a small watchdog that monitors the equivalent of building societies. But that allowed AIG Financial Products to gain regulatory approval from France's Commission Bancaire for a Paris-based banking subsidiary, Banque AIG.
That bank was then able to open a London branch under a system that allows companies approved by one EU regulator to open in another member country.
Top Gear presenter is no stranger to foot-in-mouth controversy
New essay by JK Rowling went live on Pottermore site this morning
Mike Tyson branded 'superhero' after a surprise good turn
Charlie Sheen could be set to revive his role as a hedonistic womaniser
Review: Mike Leigh's biopic is a rambling, rich character study
Want to ward off (or welcome) trick-or-treaters? Here's how
- 1 'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
- 5 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
Halloween 2014: From the Screaming Man of Pluckley to the 'White Lady' of the Tower of London - Britain's 20 most haunted places
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...
£45,000 - £65,000: Saxton Leigh: Our client is a well-known APAC Corporate and...