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.
- 1 Which country would be hardest to invade?
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
- 4 How the language you speak changes your view of the world
- 5 Royal baby girl born: Duchess of Cambridge's second child will be a princess thanks to Queen
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...