Dinallo, Ario to Lead NAIC Task Force to Approve Sale of AIG Assets
New York Insurance Superintendent Eric Dinallo and Pennsylvania Insurance Commissioner Joel Ario will oversee a National Association of Insurance Commissioners (NAIC) task force created to expedite the way for American International Group Inc.'s (AIG) sale of insurance assets. Creation of the task force was approved by commissioners on Tuesday afternoon, as federal and state regulators worked with the Treasury Department to design a solution to AIG’s liquidity crisis, according to David Neustadt, an insurance department spokesman.
The regulatory group will be working with officials of AIG and the Federal Reserve, which is lending the insurer up to $85 billion to ease it through a liquidity crisis. Dinallo will chair the working group and Ario will serve as vice chair.
AIG is expected to put several insurance and non-insurance units up for sale to pay off the Fed's two-year credit facility.
In an interview on CNBC, Mr. Dinallo said that the Fed bailout will allow the insurer time to carry out "rational sales" of assets, and said that he expects "extremely strong" interest from rival insurers in acquiring certain AIG operations.
Dinallo also lauded state regulators for the way they dealt with AIG’s problems as the company became engulfed in a financial mess tied to the plunging value of housing assets.
Published on September 18, 2008
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