May 13, 2009

Flaws in the AIG Trust Agreement and Implications for Pending Citigroup and Other TARP Trusts

Key materials
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This congressional testimony examines the Trust Document set up by the New York Federal Reserve Bank to manage the government's investment in AIG. Specifically, the testimony looks at section 3.03(a), which defines the fiduciary duty of the trustees, section 3.05(b), which deals with corporate opportunity provisions, and the indemnity and immunity provisions in sections 3.03(a) and 3.03(d). The testimony further addresses the dangers in keeping the Trust Document in its current status as a model for future Trust management.