June 17, 2014

The Real Story of AIG's Failure and why Dodd-Frank Didn't Fix it

Hester Peirce

Former Senior Research Fellow

The failure of American International Group Inc. was one of the main narratives from the financial crisis, prompting the push for greater financial market regulation and the adoption of Dodd-Frank. But what if the generally accepted account—that AIG’s supposedly unregulated derivatives activities sank the company—doesn’t actually tell the full story?