State Regulation Not the Cause of AIG Collapse

Recently the issue of the involvement of state regulation in the troubles facing some in the industry has the focus of regulators and the public. A number of articles have been written on the issue and links to the articles are below.

The collapse of AIG offers an instructive contrast between the ineffective, if not failed, efforts of federal regulators at the Office of Thrift Supervision (OTS) and the work of state insurance regulators that preserved the solvency of the seventy-one AIG insurance companies under their collective oversight.

The following are recent articles reviewing the situation.

Carefully Consider AIG's Problem - Wall Street Journal

U.S. Lawmakers Fault States for AIG Collapse - Stateline.org

State Regulators: AIG Insurers Able to Pay Claims - NAIC

State Regulation is Not to Blame for AIG - Financial Times

Insurance Companies Need a Federal Regulator - Wall Street Journal