Washington, DC – Today, the Senate Banking Committee held a hearing to examine what led to the collapse of American International Group (AIG), why the financial giant has required assistance from the federal government, and what lessons can be gleaned from the company’s demise to help prevent similar events from occurring in the future.
In the hearing, United States Senator Michael Bennet expressed his disappointment over federal regulators’ failure to detect beforehand the dangers AIG’s risky investments posed to the financial markets. He also sought clarification from Federal Reserve Board Vice Chairman Donald Kohn on what he perceived as a shift in the Fed’s position on whether taxpayers would sustain losses as a result of the government’s efforts to keep AIG afloat.
Click here or on the image above to view video footage of Senator Bennet’s remarks from today’s hearing before the Senate Banking Committee